Australian oil and gas firm Kinetiko Energy has secured $2.2 million from a placement to shareholders and directors to fast track the development of its onshore gas project in South Africa’s Mpumalanga Province.
The raise also included a $500,000 debt for equity conversion aimed at strengthening the company’s financial position.
The funding will support the firm’s ongoing production test program at its Brakfontein site, where Kinetiko is targeting commercial gas flows in one of South Africa’s most promising onshore basins.
The company said it expects early results from the drilling campaign in July 2025.
Kinetiko said $1.48 million from the fund will go toward exploration and development activities, while $350,000 will be used for corporate expenses, another $350,000 for working capital, and $20,000 for capital raising costs.
According to Executive Chairman Adam Sierakowski, the funds will enable the company to push forward with its five well production test program, launched in August 2024, to determine the commercial viability of gas flow from the basin.
“The next valuable milestone is establishing through production test wells drilling commercial gas flow rates and depletion curves,” Sierakowski said in a statement issued by the company.
“This funding supports the production test well currently underway at the Brakfontein site, with initial results expected to be delivered in July 2025.”
The Brakfontein test wells are a central component of Kinetiko’s broader plan to tap into what it describes as one of the largest undeveloped onshore gas fields in South Africa, with an estimated 6 trillion cubic feet (tcf) of gas in place.
The current drilling campaign is expected to help the company assess reservoir quality, resource size, and the most suitable development strategy.
Local gas push gains traction
Moreover, Kinetiko is among a growing list of energy companies exploring onshore gas opportunities in South Africa as the government moves to reduce reliance on imported energy and diversify its energy mix.
In this context, the Mpumalanga gas project is considered strategically important, both for regional development and national energy security.
Although Kinetiko is based in Australia, it has focused its core operations in South Africa, where it holds exploration rights through its subsidiary Afro Energy.
The company’s aim is to provide domestic gas to industries currently dependent on imported fuels or carbon intensive alternatives.
With energy shortages and grid instability continuing to weigh on South Africa’s economy, projects like Kinetiko’s are attracting growing investor interest.
Sierakowski added that the raise not only funds the current campaign but positions the company to scale quickly should test results confirm viable reserves.
“We’re optimistic about what lies ahead and look forward to updating the market as results come in,” he said.
