Kinetiko Raises $2.2M for South African Gas Project

Australian E&P firm Kinetiko Energy has secured $2.2 million through a placement to directors and shareholders to accelerate the development of its onshore gas project in South Africa’s Mpumalanga Province. As part of the placement, the company also converted $500,000 of debt into equity.

Proceeds will be allocated as follows: $1.48 million for exploration and development activities, $350,000 for corporate expenses, $350,000 for working capital and $20,000 for capital raising costs.

“The next valuable milestone is establishing through production test wells drilling commercial gas flowrates and depletion curves. This funding supports the production test well currently underway at the Brakfontein site with initial results expected to be delivered in July 2025,” stated Adam Sierakowski, Executive Chairman, Kinetiko Energy.

Kinetiko launched a five-well production test program in August 2024 to improve understanding of the project’s geology and reserves. The program also aims to identify additional resources and determine the best approach to develop the basin’s estimated 6 trillion cubic feet of gas.