3 Feb 2014investor presentation● Neutral
Indaba presentation repeats known facts: 2.4 tcf GIP, 1.5 tcf 2C, six of seven northern wells flowed, maiden reserves mid 2014. It adds the December 2013 $1.7m raise at 15 cents to the funding history.
Announcements, explained
Each one in plain English, with the numbers worked through for a shareholder.
31 Jan 2014quarterly activities report● Neutral
December quarter: eight pilot wells now drilled at Amersfoort, six have flared gas. The first Volksrust well KV-04PT hit water that blocked depressurisation. Cash is $1.792m after the $1.7m placement. Work overs are planned, with Phase 3 drilling to begin.
24 Jan 2014material agreement▲ GoodMajor
Kinetiko signed a legally binding six-month MOU to form a JV with White Rivers Exploration over 716km² of Karoo Basin gas permits (Heilbron, Kroonstadt, Ventersburg). Kinetiko would operate with 50%. The permits are applications, accepted but not yet granted.
23 Jan 2014director officer appointment▼ BadMajor
The board terminated Andrew Lambert as managing director; he has six months' notice and will help with the transition. Directors James Searle and Geoff Michael become joint interim managing directors while a replacement is sought. No reason is given.
12 Dec 2013capital raising announcement● NeutralMajor
Kinetiko raised about $1.7m via a placement of roughly 11.34m shares at 15 cents, a 22% discount to the 5-day average price. Argonaut was sole lead manager. Funds go to a pilot 5-spot field, core drilling and permit appraisal; the price is below the 18 cents of December 2012.
What it means for a shareholder
11.3m new shares at A$0.150 to raise about A$1.7m. That's 8.2% dilution: every existing holder's slice gets 8.2% smaller. If you held A$1,000 of shares (6,667 at the issue price), your slice goes from 0.00522% to 0.0048% of the company. To keep it you'd need 592 more shares - about A$89 at the issue price.
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12 Dec 2013other● Neutral
ASX lifted the trading suspension immediately following the capital raising announcement. Administrative notice only.
6 Dec 2013other● Neutral
Kinetiko's shares were placed in voluntary suspension on 6 December, following a trading halt on 3 December, pending an announcement about a capital raising.
25 Nov 2013investor presentation● Neutral
East coast roadshow deck: 127.7m shares, A$25.5m market cap, A$1.3m cash at 31 October, no debt. It repeats 2.4 tcf GIP and 1.5 tcf 2C. Maiden reserves are now shown as mid 2014, slipping from Q1 2014.
20 Nov 2013other● Neutral
Argonaut has started broker research coverage of Kinetiko; the report is on the company website. The announcement itself gives no valuation or rating details.
13 Nov 2013material agreement● NeutralMajor
Kinetiko signed a mandate on 8 November with Argonaut as joint corporate adviser alongside Trident Capital and as exclusive financier for developing the Amersfoort project. No fee or funding amount is given. (Inference: a funding raise may follow.)
4 Nov 2013drilling spud▲ GoodMajor
Kinetiko spudded KV-04PT, the first pilot well on the southern Volksrust licence (38ER), replacing the planned northern KA-07PTR as the third well. Eleven core holes there show gas over 690km². Coal is deeper at 400-500m+, and higher pressures are expected.
31 Oct 2013quarterly activities report● Neutral
September quarter report repeats KA-06PT (10,000 scf/d) and KA-03PT2 (24-25,000 scf/d) results and Badimo's $1.1m payment. Current program is estimated to cost about $1.1m. ER applications go to PASA in December, with evaluation early 2014. Customer talks continue.
30 Oct 2013flow test result▲ GoodMajor
KA-03PT2 flowed spontaneously at 24,000-25,000 scf/d with no pumping, 330m from KA-03PT (up to 350,000 scf/d earlier). Six of seven northern pilot wells have now flared gas; the seventh failed. Rates are modest versus KA-03PT.
23 Oct 2013drilling progress report● Neutral
Second pilot well KA-03PT2 was drilled to 458m on the northern licence, with pumping to start within five days. This follows the KA-06PT result. Three wells are still expected to be completed in early November, with 4-6 weeks of testing after.
21 Oct 2013flow test result● Neutral
KA-06PT flowed about 10 Mscf/day over 12 days, limited by water extraction; a certified stable rate is still to come. Gas has now flowed from five of six pilot wells, far below KA-03PT's 332 Mscf/day. The remaining two wells now finish in November.
21 Oct 2013annual report● Neutral
Annual report for the year to 30 June 2013 (re-lodged; the Sept 30 version was already summarised). Chairman repeats 20 core holes, the $3m raise, KA-03PT's 332 Mscf/day and first reserves aimed for Q1 2014. Financials are not in the excerpt.
2 Oct 2013drilling spud▲ Good
Kinetiko spudded KA-06PT, its sixth pilot well on the northern licence, and gas was encountered while drilling. Two further wells are to follow, all three by late October. Maiden reserves remain possible in Q1 2014.
30 Sept 2013annual report● Neutral
Annual report for the year to 30 June 2013. The chairman cites delays but highlights the $3m raise, the 332 Mscf/day KA-03PT result and Botswana. First reserves are aimed for Q1 2014; potential land tenure is about 29,691 km². Financial figures are not in the excerpt.
20 Sept 2013drilling scheduled▲ Good
Drilling restarts on the northern licence (56ER), with three new pilot wells (KA-06PT, KA-03PT2, KA-07PT) due by December. This is a second test of the 332 Mscf/day KA-03 area. Talks continue with potential gas customers.
11 Sept 2013investor presentation● Neutral
London roadshow deck repeats known facts: 2.4 tcf gas in place, 20 core holes, 5 pilot wells and maiden reserves targeted Q1 2014. It states the contingent resource is upgraded to 1.1 tcf (2C), differing from the 1.5 tcf stated earlier.
10 Sept 2013admin correction● Neutral
Corrected notice of chairman Adam Sierakowski's on-market purchase of 3,978 shares on 5 September 2013, fixing an incorrect acquisition date in the earlier filing. Small holding change only.
15 Aug 2013regulatory community update▲ GoodMajor
The regulator accepted three Exploration Right applications covering about 4,288 km² near Amersfoort, 66% of the three TCP areas kept. TCP38 was relinquished as not prospective. Further submissions are due by 4 December 2013 before government evaluation.
31 July 2013quarterly activities report● Neutral
June quarter report restates Badimo's $1.1m payment, funding to Q1 2014 and the 45 Mscf/day KA-10PTR flow. Drilling restarts by September with at least 3 more pilot wells. Maiden reserves still expected Q1 2014. Botswana application noted.
24 July 2013joint venture update▲ GoodMajor
Badimo paid about $1.1m of the overdue cash calls, resolving the funding dispute raised in June. An audit process is agreed to prevent repeats. Amersfoort is funded to Q1 2014, drilling restarts, and maiden reserves are now targeted by Q1 2014.
10 July 2013flow test result● NeutralMajor
Redrilled pilot well KA-10PTR flowed a stabilised 45 Mscf/day over 10 days, versus 332 Mscf/day at KA-03PT 8 km away. Kinetiko says initial studies suggest such rates can be commercial. KA-05PT is dropped. Maiden reserves now late Q4 2013; funded to April 2014 if Badimo pays.
5 July 2013security holder rights change● Neutral
50,300,000 founder shares will be released from escrow on 21 July 2013. Escrow is the lock-up on founders' holdings since listing; the text gives no sale intentions.
12 June 2013joint venture update▼ BadMajor
Badimo owes Kinetiko $1.3m (up to $1.6m by 30 June); Kinetiko threatens enforcement if unpaid by early July. Drilling suspended except the KA-10PTR redrill, and further drilling is deferred. Maiden reserves slip to Q4 from Q3. Cash is $1.3m excluding Badimo.
6 May 2013asset acquisition disposition● NeutralMajor
Kinetiko applied for 10,500 km² of exploration tenure in central Botswana (11 areas, Kalahari Karoo Basin), a new country beyond South Africa. Grant is expected in July; first-year commitment is at least A$330,000. Early-stage frontier area.
1 May 2013other● Neutral
Kinetiko notes broker Wilson HTM has started research coverage, the first report since its IPO. The announcement gives no figures or valuation; it only tells readers how to obtain the report.
30 Apr 2013quarterly activities report● Neutral
March quarter: cash $3.2m, funded to January 2014 assuming Badimo's $1.1m contribution, still being negotiated. Initial reserves now targeted Q3 2013 after the 332 Mscf/day result. Pilot test completions slip into Q3. Exploration right applications over the TCPs are expected in July.