Kinetiko Energy (KKO) Q1 2026 TU earnings summary

Executive summary

• Achieved record gas flow rates at Brakfontein, with KA03PT06 delivering a peak of 1,600 Mscfd and sustained flows of 188 Mscfd over 14 days, more than doubling previous bests.

• Renewed key exploration rights (ER270, ER271, ER272) for two years, securing 2,983 km² and supporting accelerated development.

• Signed a binding Joint Development Agreement with FFS Refiners to co-develop a pilot LNG plant, with Phase 1a jointly funded at R64.3 million (A$5.7 million).

• Appointed former Exxaro CEO Mxolisi Mgojo as Non-Executive Director, enhancing board expertise.

Financial highlights

• Ended the quarter with $678k in available funds, including $440k in cash and $238k in a joint venture entity.

• Net cash outflow from operating activities was $507k; investing activities used $800k, mainly for exploration and equipment.

• No debt facilities drawn; company remains debt-free.

• Estimated 0.6 quarters of funding available at current burn rate; company is considering further funding options.

Outlook and guidance

• Ongoing production testing at KA03PT06 and KA03PT10 to inform cluster design and reserve modelling.

• Phase 1a of Project Alpha to include drilling five new wells, upgrades, and reserve certification, targeting pilot LNG production in 2026.

• Plans to scale LNG production to 25,000 tpa in Phase 2 and up to 125,000 tpa in Phase 3.