Kinetiko Energy (ASX:KKO) Quarterly Report: Brakfontein Field Plan, Placement and Mulilo Deal

Sonal Goyal

23 October 2026 07:43 PM AEDT

Kinetiko Energy (ASX:KKO) Quarterly Report: Brakfontein Field Plan, Placement and Mulilo Deal

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Key Highlights

Kinetiko adopted a Field Development Plan for Phase 1 of the Brakfontein Rolling Cluster, targeting first commercial gas in late 2027.
Firm commitments were received for an A$5.4 million placement at $0.03 per share, with Tranche 1 of $1.5 million issued.
A settlement with Mulilo brings the Rand equivalent of A$1.26 million in non-dilutive cash consideration for an 18.54 km2 exclusion zone.
Available funds stood at approximately $1.127 million at 30 September 2026, including $816k in cash.

Kinetiko Energy Limited (ASX:KKO) reported on 23 October 2026 on its activities for the quarter ended 30 September 2026, a period in which it adopted a Field Development Plan (FDP) for Phase 1 of its Brakfontein Rolling Cluster in South Africa's Mpumalanga Province. The company described the plan as a milestone in its transition from explorer to gas producer.

Field Development and Permitting

Kinetiko said the FDP is based on existing wells producing high-methane gas with minimal impurities, which it says streamlines processing and enables a simplified, accelerated start-up. The company said the gas is a shallow conventional accumulation that does not require fracking. Phase 1 connects four existing Brakfontein wells to a central manifold and a mobile, modular CNG facility.

After adopting the plan, the company began preparing a Bulk Sampling Permit and a Production Right over Exploration Right 271. After quarter end it said the Bulk Sampling Permit application would be submitted to the Petroleum Agency of South Africa at the end of October 2026 with grant anticipated in the first quarter of 2027. Concept design for the Phase 1 cluster is complete and detailed engineering is under way.

Funding and Agreements

Kinetiko received firm commitments for a placement of about A$5.4 million before costs, covering 180,000,000 shares at $0.03, cornerstoned by Talent 10 Holdings (Pty) Ltd, an entity associated with non-executive director Mxolisi Mgojo, which committed $3.0 million. Tranche 1, of 50,000,000 shares and $1.5 million, was issued on 6 August 2026, while Tranche 2, of 130,000,000 shares, is yet to be issued. Proceeds are indicated for Phase 1 development, further exploration wells and gas production permitting.

Subsidiary Afro Energy (Pty) Ltd also signed a Co-operation and Settlement Agreement with Mulilo over land overlapping the proposed Newcastle wind energy facility. It covers an 18.54 km2 exclusion zone, approximately 1.1% of Exploration Right 270, and brings the Rand equivalent of A$1,260,720 in cash, with 20% payable as a non-refundable initial amount and the balance after Financial Close of the Newcastle Project, targeted on or before 31 December 2026.

Why This Could Matter

Kinetiko said the FDP enables engagement with South African capital partners, including institutional financiers, government utilities and development funds. Placement proceeds are directed at Phase 1 field development at Brakfontein, targeting first commercial gas in late 2027, while the Mulilo payments are to be used to expedite the Phase 1 cluster.

Where Things Stand

At 30 September 2026 Kinetiko held about $1.127 million in available funds, made up of $816k in cash and $311k from joint venture balances and FFS Refiners advances.

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