Kinetiko Energy (KKO) Q1 2025 TU earnings summary

Executive summary

• Completed 2022–2024 core hole exploration program, logging 38th core hole (ER270-11C) with significant gas shows and 90m of gas-bearing sequences, fulfilling regulatory requirements.

• Launched five-well gas production test program; first well (ER271-23PT) drilled but did not yield commercial gas due to a geological anomaly, with next wells targeting promising areas.

• Maintained strong safety record with over 8,281 person-hours and no reportable incidents.

• Company is debt-free with $4.29m in available funds at quarter end, including $1.02m in cash and $1.8m advanced to a joint venture.

Financial highlights

• Net cash outflows for the quarter: $664k from operations, $2.13m from investing, and $161k from financing.

• Cash and cash equivalents at 30 September 2024: $4.29m, down from $7.21m at previous quarter end.

• Payments to directors and associates totaled $275k for the quarter.

• Estimated 1.94 quarters of funding available at current burn rate.

Outlook and guidance

• Remaining four production test wells are strategically located near infrastructure and expected to exceed 50,000 SCF/day flow rate targets.

• Company expects to continue operations and meet objectives, with plans to monitor funding and consider further capital raises if needed.