Kinetiko Energy Powers Ahead with Strong Gas Flows and LNG Pilot Deal
Kinetiko Energy reports robust gas production from test wells and secures a binding joint development agreement with FFS Refiners to advance a pilot LNG plant in South Africa, backed by a $3.15 million capital raise and new North American market listing.
- Sustained strong gas flows from test wells 271-KA03PT06 and 271-KA03PT10 with methane purity over 98.5%
- Binding Joint Development Agreement signed with FFS Refiners to co-develop pilot LNG plant at Brakfontein
- Successful $3.15 million share placement to fund Phase 1a of Project Alpha gas field development
- Commencement of trading on North American OTCQB market under ticker KKOBF
- Healthy cash position of approximately $2.35 million with no debt
Robust Gas Production Signals Commercial Potential
Kinetiko Energy has delivered encouraging results from its production test wells 271-KA03PT06 and 271-KA03PT10 at the Brakfontein gas field in South Africa’s Mpumalanga Province. The wells produced nearly 8 million cubic feet of gas combined, with methane content exceeding 98.5%, underscoring the high quality of the resource. Notably, well 271-KA03PT06 plateaued after an initial decline, maintaining an average flow rate of 164 thousand standard cubic feet per day over 27 days, while 271-KA03PT10 sustained a steady flow of 91 thousand cubic feet per day over 40 days without decline.
Strategic Joint Development Agreement with FFS Refiners
In a significant step towards commercialisation, Kinetiko executed a binding Joint Development Agreement with FFS Refiners to co-develop a pilot liquefied natural gas (LNG) plant at Brakfontein. This partnership will see the co-funding of Phase 1a of Project Alpha, which includes drilling five new wells, upgrading existing infrastructure, gas testing, and reserve certification. FFS has already advanced approximately $560,000 as the first tranche of a total commitment of around $2.58 million, accelerating development activities and underpinning the project’s momentum.
Capital Raise and Market Expansion
Kinetiko successfully completed a $3.15 million share placement in November 2025, attracting cornerstone investors from South Africa and Australia. The funds are earmarked primarily for advancing Project Alpha’s Phase 1a gas production cluster and additional exploration near Majuba and other prospective areas. Complementing this capital injection, Kinetiko commenced trading on the North American OTCQB market under the ticker KKOBF in December 2025. This listing enhances the company’s visibility and liquidity among North American investors, broadening its capital access and strategic partnership opportunities.
Financial Health and Operational Progress
As of 31 December 2025, Kinetiko reported a strong financial position with approximately $2.35 million in cash and no debt. The company continues to invest in exploration and development activities, supported by joint venture funding and shareholder-approved related party placements. Safety remains a priority, with no reported incidents during the quarter and over 3,750 person-hours logged at well sites.
Looking Ahead
With sustained gas flows exceeding commercial viability thresholds and a clear development roadmap underpinned by strategic partnerships and capital support, Kinetiko is well-positioned to advance its shallow conventional gas projects. The upcoming phases of Project Alpha, including LNG proof of concept and full-scale production, will be critical milestones to watch as the company seeks to establish a reliable domestic gas supply for South Africa’s evolving energy market.
Bottom Line?
Kinetiko’s strong production results and strategic partnerships set the stage for scaling its LNG ambitions, but execution of future phases hinges on regulatory approvals and continued funding.
Questions in the middle?
- How will the ongoing production right application impact the timeline for full-scale LNG development?
- What are the prospects for reserve certification and potential upward revisions based on sustained flow rates?
- How will Kinetiko leverage its OTCQB listing to attract further North American investment or strategic partners?
