Kinetiko valued at 24c by MST

24 October 2022 07:02
Kinetiko's rig in South Africa

Kinetiko Energy have received a valuation of 24c a share from MST Access, the sector analysts surveying it as holding the enviable position to be a solution to the ongoing South African energy crisis.

The initiation report saw Kinetiko’s gas was exactly where it is needed, a wholly owned project with a 2C contingent gas resource of 4.9 trillion cubic feet nestled within existing transport and power infrastucture, and found within the shallow sandstone and coal formations which indicate a potential long life of gas development.

Covering around 7000 square kilometres, swathes of the project have yet to be explored, and with all holes so far identifying gas, there lies clear potential for massive scale expansion.

South Africa’s power generation is lying in clear decay, underinvested with ageing infrastructure and the rainbow nation has been crippled by its ongoing energy crisis.

And with coal declining and renewables far away, the government turns towards gas, creating multiple sales options, with gas to power, compressed natural gas, liquefied or a simple pipeline all on the table.


“KKO is in the enviable position of being part of both a short and long-term, lower-carbon solution to SA’s energy needs” — MST Access

Kinetiko holds a joint development agreement with government subsidiary Industrial Development Corporation, in addition to a joint venture highly experienced gas to power partner Vutomi Energy, and MST see quality partners representing a quality project, in addition to KKO’s own collection of experienced energy executives.

It is certainly no pipe dream, Kinetiko is already set to fire up its core well program and analysis near the fuel hungry Majuba Power Station — ahead of its milestone Maiden Reserves certification.

KKO’s Australian Stock Exchange-listed share price was trading at 9c today (6.56 am UTC+ 8 hours).

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