ASX-listed Kinetiko Energy’s renounceable pro-rata entitlement offer to eligible shareholders, announced in May, closed on June 11 and raised about A$4.9-million (before costs), with strong support from major shareholders and directors.
The company is developing an energy transition solution for South Africa, focused on commercialising advanced shallow conventional gas projects in the country’s Mpumalanga province.
Application funds equate to about 97% of the maximum subscription under the entitlement offer.
Kinetiko says the funding enables a significant five production well gas flow testing programme to be started in the third quarter.
The flow testing programme aims to identify high flow rate gas zones and sites for the development of production clusters.
Gas flow testing results will provide data to enable the company to apply for increases in resource and reserves certification.
“On behalf of the board of directors, I wish to thank all shareholders for their comprehensive support of the entitlement offer,” says executive chairperson Adam Sierakowski.
“The funds raised under the entitlement offer will be used to aggressively advance the company’s gas exploration activities.
“These activities, highlighted by the five appraisal production wells to be drilled this year, are planned to achieve the highest flow rates and technical outcomes. Successful results from these wells are expected to significantly mitigate the technical risk associated with the unique geology of the company’s world-class onshore gas discovery, paving the way for a promising future,” he explains.