An Australian gas company, Kinetiko Energy (Kinetiko), has raised about $1.4mn, which it plans to use for exploration and to continue a production testing programme at its project in northeastern South Africa.
The ASX-listed firm said in a release on June 12 that it will also use about 15.9% of the funding as working capital. Its directors committed to subscribe for a total of up to $200,604 in the fund raise.
As part of the placement, Kinetiko negotiated a debt conversion of a $323,515 loan through the issue of new fully paid ordinary shares in the company on the same terms as the placement.
“The successful capital raising again demonstrates the company’s commitment by its major stakeholders to support the journey of delivering a world-class on-shore gas discovery to development outcomes,” said the executive chairman, Adam Sierakowski.
“The next valuable milestone is establishing through production test wells, drilling commercial gas flow rates 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.”
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