Kinetiko Energy's Exploration Success Update

Kinetiko Energy Ltd (ASX: $KKO) has reported exploration success in ER270 with the first core hole of 2024 encountering huge gassy sandstone intervals and large coal seams. The company's CEO, Nick de Blocq, expressed delight at the early indications from observations of gassy core samples, showing a significant gassy interval at depth. The core well, 270-08C, is currently drilling below 600m with terminal depth expected around 700m.

Executive Commentary on Exploration Success

Following an incredibly successful exploration program in 2023, the Company spudded the first borehole of the year at 270-08C, slightly north of the town of Memel. I am delighted to report that early indications from observations of gassy core samples show a huge gassy interval at depth. Coring is currently deeper than 600m with terminal depth (TD) expected around 700m.

Summary of Exploration Update and Outlook

Kinetiko Energy's exploration success in ER270, with the encounter of huge gassy sandstone intervals and large coal seams, strengthens the company's assumptions of an expanding gas resource play with conventional sandstone reservoirs. This phase of exploration will include 2 more core wells in 2024, indicating the company's commitment to further developing its onshore gas exploration and production activities. Kinetiko Energy's vision to commercialize an energy transition solution for South Africa is supported by the positive economics and significant contingent resources established, positioning the company as a key player in the rapidly developing gas market in South Africa.