Kinetiko Energy (KKO) Q3 2025 TU earnings summary

Executive summary

• Achieved 100% success rate in encountering gas across all drilled wells, with improving gas flows from both production test wells during the quarter.

• Drill optimisation study identified water invasion from drilling as a key factor restricting gas flow, with remediation strategies now being implemented.

• No accidents, injuries, or environmental incidents reported, with over 4,286 person-hours worked safely.

• Focus remains on commercialising shallow conventional gas projects in South Africa, with significant resource growth expected.

Financial highlights

• Cash and cash equivalents at 31 March 2025 were $441k, including $177k in cash and $264k in the Afro Gas Development JV.

• Net cash used in operating activities for the quarter was $(468)k; net cash used in investing activities was $(1,116)k.

• Payments to directors and associates during the quarter totaled approximately $234k.

• Estimated quarters of funding available at quarter end was 0.27, with a $200k loan secured post-quarter and further funding options under consideration.

Outlook and guidance

• Drill optimisation recommendations to be implemented in April 2025, expected to enhance gas production from current and future wells.

• Exploration program anticipated to significantly increase contingent resources and convert prospective resources.

• Focus to shift to the Amersfoort region for joint venture development with the Industrial Development Corporation.

• Company expects to continue operations and meet objectives, supported by recent and planned funding initiatives.