Kinetiko Energy (KKO) Q4 2025 TU earnings summary

Executive summary

• Drilling commenced on the third of five production test wells at Brakfontein, targeting deeper gas-rich zones with advanced techniques to enhance recovery and reduce formation damage.

• A non-binding term sheet was signed with FFS Refiners to co-develop a pilot LNG plant, aiming to accelerate small-scale gas production and supply in South Africa.

• The five-well program is expected to significantly grow the existing 6 TCF (2C) contingent resource and convert part of the 5.8 TCF 2U prospective resource.

• No accidents, injuries, or environmental incidents were reported during the quarter, with nearly 3,000 person-hours worked safely.

Financial highlights

• Successfully raised $2.2 million via a share placement in June, with strong support from directors and major shareholders.

• As of 30 June 2025, available funds totaled $1.88 million, including $1.64 million in cash and $247k in a joint venture entity.

• Net cash used in operating activities for the quarter was $388k; net cash used in investing activities was $130k.

• No debt at quarter end; estimated 3.4 quarters of funding available based on current cash burn.

Outlook and guidance

• First gas flow results from the third production test well are expected in August 2025.

• A binding Joint Development Agreement with FFS is anticipated in August 2025, with further phases planned to expand LNG production.

• The pilot LNG plant is targeted for 2026, with phased expansion to increase production and supply.