Kinetiko Energy: Transforming SA’s Gas Future

Investor Insight

Kinetiko Energy is developing a large-scale conventional onshore gas resource in South Africa, supported by 6.0 Tcf of 2C contingent resources, 5.8 Tcf of 2U prospective resources and maiden certified reserves. The company is advancing a phased pathway toward initial CNG production, with first gas targeted for late 2027.

Overview

Kinetiko Energy (ASX:KKO) is an onshore gas exploration and development company focused on near-term compressed natural gas production (CNG) from its shallow conventional gas assets in South Africa. The company controls approximately 5,600 sq km of prospective acreage strategically positioned near major power generation infrastructure, industrial customers and established energy networks within South Africa’s primary power-producing region.

Kinetiko Energy Project and Infrastructure Map

The company is advancing its assets against a backdrop of South Africa’s ongoing energy crisis. Ageing coal-fired power stations, persistent electricity shortages and declining regional gas supply have created demand for reliable domestic energy alternatives. Kinetiko’s shallow conventional gas resources are positioned as a near-term energy solution capable of supporting the country’s energy security requirements.

*IGUA-SA Gas Roadmap Summary – April 2026

Kinetiko has established a substantial resource inventory comprising 6.0 Tcf of 2C contingent resources and 5.8 Tcf of 2U prospective resources, equivalent to approximately 1 billion BOE. The company continues to pursue resource growth through appraisal drilling and testing programs designed to expand reserves and convert prospective resources into contingent resources. The proposed ER383 licence area would add a further 2,383 sq km and increase the company’s landholding by 60%.

Transitioning from developer toward becoming a gas producer, Kinetiko is advancing a scalable “rolling cluster” strategy to accelerate near-term CNG production while developing sequential larger producing well clusters. This staged, capital-efficient approach enables incremental field development, driving gas resources to reserve growth and paving the way for larger production and commercial expansion with a variety of potential development partners and customers. Throughout this evolution, the company remains supported by an experienced leadership team with deep expertise across the energy, mining, finance and infrastructure sectors that has been operating in the Mpumalanga region for 15 years.

Company Highlights

• Large-Scale Resource Base: Reported 6.0 Tcf of 2C contingent resources, equivalent to approximately 1 billion BOE, with potential to grow with a further 5.8 Tcf of 2U prospective resources.
• Certified Reserves with Positive Economics: Maiden 2P reserves of 6.4 Bcf have been established over the Brakfontein well cluster area, confirming positive project economics while covering only 0.2 percent of granted tenements.
• 100% Exploration Success: All 50 exploration wells drilled to date have successfully encountered gas, demonstrating consistent geology across the company’s acreage position.
• High-Quality Conventional Gas: Gas testing has recorded methane content of approximately 95% with extremely low CO₂ levels and no fracking required.
• Low-Cost, Development: Field Development Plan adopted for phased development of the first production cluster and then a Rolling Cluster strategy where sequential larger clusters will be developed, utilising economies and scale, mobile infrastructure, and capital efficiency enabling a variety of capital partners and customers.
• Strategic Energy Infrastructure Location: Situated adjacent to major power infrastructure, industrial demand centres and existing energy networks in South Africa.
• Strong Development Partnerships: Agreements with the Industrial Development Corporation of South Africa and FFS Refiners in place to support staged rolling cluster development and commercialisation activities.

Key Project

Brakfontein Gas Project

The Brakfontein Gas Project is Kinetiko Energy’s most advanced development asset and the foundation of its phased commercialisation strategy. Located in Mpumalanga Province, the project comprises a cluster of shallow conventional gas wells situated close to major energy infrastructure and key centres of power demand.

Brakfontein hosts the company’s maiden certified gas reserves, with 2P reserves of 6.4 Bcf confirming positive project economics. Importantly, the reserve estimate has been calculated over only 0.2 percent of granted tenements, highlighting the broader scale potential of the company’s resource base.

Brakfontein proposed Phase 1 production wells identified in red

The project provides a structured pathway to commercial production under Kinetiko’s Rolling Cluster Development Strategy (RCDS), which marks the Company’s transition from exploration to production and begins with the Phase 1 Brakfontein CNG development. Successful production wells were completed at Brakfontein in August and September 2025 using optimised drilling procedures, supporting commercial development of the initial cluster, in which four existing wells will be connected to a central manifold and a mobile, modular CNG facility, with first gas targeted for late 2027. Phase 1 infrastructure is designed to be modular and integrated across subsequent phases, minimising re-engineering as clusters are added and scaling toward full-field LNG production across the Company’s broader tenement package.

Phase 1 includes the drilling of a Key Well to determine the Phase 2 cluster location. Phase 2 leverages Phase 1 data to guide the drilling of approximately 10 new optimised wells for a hybrid LNG/CNG production cluster. Phase 3 targets larger gas compartments with additional wells and a mini-LNG plant, and Phase 4 expands to a full-field LNG operation across the Company’s broader tenement package.

Indicative Phase 1 Execution Timeline

Management Team

Adam Sierakowski – Executive Chairman

Adam Sierakowski is a corporate lawyer and the founding director of Palisade Corporate and Trident Capital. He has more than 30 years of experience advising public and private companies on corporate transactions, capital raisings, IPOs and mergers and acquisitions, while also serving on the boards of several ASX-listed companies.

Rob Bulder – Interim CEO and Non-executive Director

Rob Bulder is a Chartered Accountant with more than 30 years of commercial experience across the manufacturing, financial services, IT, airline and gas industries. He has held numerous senior management and executive board positions overseeing large-scale operations and multi-billion Rand budgets.

Don Ncube – Non-executive Director

Don Ncube is a respected South African business leader and pioneer of Black Economic Empowerment. He is the founder and former Chairman and CEO of Real Africa Holdings (a JSE-listed company) and previously spent 22 years with Anglo American, becoming the first Black South African appointed to its board.

Mxolisi Mgojo – Non-executive Director

Mxolisi Mgojo is a prominent South African mining executive and former Chief Executive Officer of Exxaro Resources. He also served as President of the Minerals Council South Africa and continues to hold leadership roles across South African business organisations.

Robert Scharnell – Non-executive Director

Robert Scharnell brings more than 30 years of international energy industry experience gained through Chevron Corporation. His expertise includes business strategy, international negotiations, commercial transactions and large-scale project development.

Paul Doropoulos – Chief Financial Officer

Paul Doropoulos has approximately 25 years of experience working with ASX-listed companies across the energy, mining, mining services and media sectors. He has served in both executive and non-executive capacities and was directly involved in Kinetiko Energy’s ASX listing.

Hendrik Burger Jr – Operations Manager

Hendrik Burger has been involved in Kinetiko’s field operations since test well activities commenced in 2012. Based in Amersfoort, he oversees field operations, project execution and stakeholder engagement, providing continuity and operational expertise on the ground in South Africa.

Simon Whybrow – Company Secretary

Simon is a highly driven and dedicated professional with a wealth of experience as a CFO, Company Secretary, and Commercial Manager.