Kinetiko Energy (KKO) H2 2024 earnings summary

Executive summary

• Achieved a transformative year with successful drilling and gas flow testing, increasing 2C contingent gas resource to 6 TCF and obtaining maiden 2P gas reserves of 6.4 BCF in South Africa's Mpumalanga Province.

• Completed acquisition of the remaining 51% of Afro Energy, consolidating 100% ownership of the flagship Mpumalanga Gas Project.

• Demonstrated commercial viability of gas-to-power with a 1.2MW generator, paving the way for LNG production cluster development.

• Raised A$6.5m via subscription agreement and A$5m through a rights issue, supporting aggressive exploration and production plans.

• No environmental or safety incidents reported, with strong ESG focus and local employment initiatives.

Financial highlights

• Net loss for the year ended 30 June 2024 was $5,232,581, compared to $4,335,534 in 2023.

• Total income increased to $358,224 from $102,403 year-over-year.

• Cash and cash equivalents at year-end were $7.21m, up from $3.56m in 2023.

• Share-based payments rose to $585,824 from $31,993 year-over-year.

• Total assets increased to $74.96m from $13.22m, reflecting the Afro Energy acquisition.

Outlook and guidance

• Five-well production test program to commence in Q4 2024, aiming to refine production models and increase gas reserves certification.

• Production Right application for block ER271 advancing, with regulatory approval for ER383 expected by mid-2025.

• Targeting first LNG production cluster within 18 months and further strategic partnerships for multiple gas clusters.