Kinetiko Energy (KKO) H2 2024 earnings summary

Executive summary

• Achieved 100% success rate in drilling seven core holes across ER272 and ER270, confirming robust gas-bearing zones and multi-field development potential.

• Certified maiden gas reserves of 6.4 BCF and increased 2C contingent gas resource to over 6.0 TCF, with a 20%+ upgrade year-over-year.

• Completed acquisition of the remaining 51% of Afro Energy, consolidating full ownership of the Mpumalanga Gas Project.

• Launched a successful Gas-to-Power demonstration project, validating commercial viability and high methane purity (99%).

• Raised A$6.5m via subscription agreement and A$5m through a rights issue, ending the year with $7.21m in available funds and no debt.

Financial highlights

• Net loss for the year ended 30 June 2024 was $5,232,581, compared to $4,335,534 in 2023.

• Total income increased to $358,224 from $102,403 year-over-year, mainly from interest income.

• Cash and cash equivalents at year-end were $7,211,726, up from $3,561,132 the previous year.

• Total assets rose to $74,957,112 from $13,220,365 year-over-year, reflecting the Afro Energy acquisition.

• Share-based payments expense increased to $585,824 from $31,993 year-over-year.

Outlook and guidance

• Transitioning from exploration to production-focused activities, with a five-well production test program commencing in Q4 2024.

• Regulatory approval for ER383 expected by mid-2025, potentially expanding exploration acreage by over 60%.

• Targeting first LNG production cluster within 18 months and aiming for significant gas reserve upgrades.