Key Highlights

  • Kinetiko Energy reported cash of A$1.127 million at 30 September 2026, up from A$479,000 at 30 June, with net operating outflows of A$730,000.
  • Tranche two of its A$5.4 million placement, 130 million shares for A$3.9 million, has not yet been issued.
  • The company signed a co-operation agreement with Mulilo on 19 August 2026 for total consideration of A$1,260,720.

Kinetiko Energy Ltd (ASX:KKO) released its quarterly activities and Appendix 5B report on 23 October 2026 for the quarter ended 30 September. Cash at the end of the quarter was A$1.127 million, up from A$479,000 at 30 June, after net operating outflows of A$730,000 and Equity proceeds of A$1.5 million. The company's own Appendix 5B calculation shows an estimated funding runway of 1.54 quarters, and no Debt facilities were drawn or available.

Of the closing balance, A$816,000 is bank cash and A$311,000 sits in joint venture balances held through Afro Gas Development SA and FFS Refiners. Receipts from customers were A$255,000, against exploration and evaluation spending of A$213,000, staff costs of A$383,000 and administration costs of A$398,000. Related-party payments were A$365,000, mainly directors' fees of about A$295,000 including accrued fees from earlier periods.

The cash position follows an A$5.4 million Placement of 180 million shares at A$0.03, led by GBA Capital. Tranche one, of 50 million shares raising A$1.5 million, was issued on 6 August 2026. Tranche two, of 130 million shares for A$3.9 million, has not yet been issued. It includes 100 million shares, worth A$3.0 million, subscribed by Talent 10 Holdings, which is linked to director Mxolisi Mgojo. The activity report says tranche two is yet to be issued, while the Appendix 5B says it remains subject to Shareholder approval. A$3.9 million of the placement has not been received.

Mulilo agreement

Kinetiko signed a co-operation agreement with Mulilo on 19 August 2026 for total consideration of A$1,260,720, payable in rand equivalent. An initial non-refundable 20 per cent is due after execution, with the balance payable after financial close of the Newcastle wind project, which is targeted for 31 December 2026. The agreement creates an 18.54 square kilometre exclusion zone on the eastern boundary of ER270, about 1.1 per cent of the licence. Afro Energy holds a right of first refusal to Supply gas if gas-fired generation is procured, but there is no obligation to procure. The company intends the proceeds to expedite the Phase 1 compressed Natural Gas (CNG) cluster at Brakfontein. The Appendix 5B refers to an A$1.9 million settlement, which differs from the A$1.26 million figure elsewhere.

Field development and permitting

A field development plan for Phase 1 of the Brakfontein Rolling Cluster was adopted on 1 July 2026. Phase 1 connects four existing wells to a central manifold and a mobile modular CNG facility, with concept design complete and detailed engineering under way. The company describes the gas as shallow conventional gas in sandstone that does not require fracking and is not coal bed methane. It has shortlisted three sites for a Phase 2 well, with drilling planned for early 2027 and long-lead items due in February 2027, and has started an environmental impact assessment.

A bulk sampling permit application is expected to be submitted to the regulator, PASA, at the end of October, with grant anticipated in the first quarter of 2027 after a process of three to four months. A production right application over all of ER271 is in preparation. ER270, ER271 and ER272 have had second renewals granted, while ER383 awaits a decision from the Department of Forestry, Fisheries and the Environment.

Partners and milestones

The FFS Refiners agreement provides aggregate phase 1a funding of R28.656 million, about A$2.58 million, of which a first tranche of R6.2 million was received in November 2025. Cresco has been engaged to source development finance and partners. Kinetiko Energy (ASX:KKO) says its CEO search is complete with three candidates shortlisted and a selection due in October. A CNG Facility contract award is scheduled for the fourth quarter of 2026, and first commercial gas is targeted for late 2027. These dates are company targets.