Past year: ▼ 55%(3.20c – 7.15c AUD)
Each one in plain English, with the numbers worked through for a shareholder.
4 July 2022well test result▲ Good
Korhaan-4 achieved a stable 40,000 scf/day over three days, and 91,000 scf/day over 12 hours after the pump was removed. The company expects over 100,000 scf/day on retest once equipment problems are fixed. Continues the Korhaan testing.
14 June 2022well test result▲ GoodMajor
First Korhaan flow rates: Korhaan-3 sustained 83,000 scf/day, Korhaan-5 flowed 210,000 scf/day early then declined to a stable 7 Nm³/hour, and Korhaan-4 has been re-entered for retesting. Wells plus older ones expected to supply 200,000-250,000 scf/day for pilot production.
2 June 2022capital raising announcement● NeutralMajor
Rights issue closed raising only A$1.7m (22.66m shares at 7.5c) against the ~A$3.1m target, though above the $1.5m minimum. With Phefo, total is about A$2.7m. Remaining shortfall is to be placed by 30 June.
What it means for a shareholder
22.7m new shares at A$0.075 to raise about A$1.7m. That's 5.3% dilution: every existing holder's slice gets 5.3% smaller. If you held A$1,000 of shares (13,333 at the issue price), your slice goes from 0.00327% to 0.0031% of the company. To keep it you'd need 740 more shares - about A$56 at the issue price.
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16 May 2022capital raising announcement● Neutral
Rights issue closing date extended 10 days to 30 May 2022 because postal delays meant many shareholders were still receiving the prospectus. New shares now due 6 June. Timetable change only.
5 May 2022capital raising announcement● Neutral
Rights issue prospectus and entitlement forms sent to shareholders; the 1-for-15 offer at 7.5c (about $3.13m, $1.5m minimum) is open, closing 20 May 2022. Administrative step in the already announced raising.
3 May 2022investor presentation● Neutral
May 2022 investor presentation restating the 4.9 Tcf 2C resource, 79 gas compartments, the IDC joint development agreement, the Phefo Power ZAR10m subscription and the rights issue. No new information.
2 May 2022capital raising announcement● Neutral
Rights to the 1-for-15 entitlement offer at 7.5c began trading on ASX. Offer closes 20 May 2022 and rights trading ends 13 May. Administrative step in the already announced raising of about $3.13m.
28 Apr 2022capital raising announcement● Neutral
Prospectus for the 1-for-15 renounceable rights issue at 7.5c, raising about $3.13m with a $1.5m minimum. Offer opens 5 May and closes 20 May 2022. Formal documentation of the raising already announced.
20 Apr 2022capital raising announcement● NeutralMajor
Kinetiko raises about A$4.1m: ZAR10m (30m shares) from South African investor Phefo Power, plus a 1-for-15 renounceable rights issue at 7.5c to raise up to A$3.1m, partially underwritten to $1.5m by Mahe Capital. Phefo also boosts BEE ownership.
What it means for a shareholder
30.0m new shares at about A$0.1033 to raise about A$3.1m. That's 6.8% dilution: every existing holder's slice gets 6.8% smaller. If you held A$1,000 of shares (9,677 at the issue price), your slice goes from 0.00237% to 0.00221% of the company. To keep it you'd need 711 more shares - about A$73 at the issue price.
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4 Apr 2022farm in farm out agreement▲ GoodMajor
Afro Energy signs a joint development agreement with South Africa's state-owned IDC for a roughly 20-well gas field on ER271: IDC puts in R70m for 45%, Afro R85m for 55%. Binding loan agreements are due by 1 August 2022; this is the long-awaited institutional funding, with field start expected late 2022.
24 Mar 2022investor presentation● Neutral
Notice of CEO Nick de Blocq's presentation at the 25 March ShareCafe webinar, with slides on the South African assets. Repeats known facts, including the ministerial consent and 4.9 Tcf 2C resource; no new information.
17 Mar 2022regulatory community update▲ GoodMajor
South African ministerial consent obtained for transfer of Badimo's 51% of Afro Energy to Kinetiko, described as the last regulatory approval needed; shareholder approval is still required. Resolves a key condition of the Badimo deal covering the 4.9 Tcf 2C resource.
14 Mar 2022half year report● Neutral
Half-year to 31 December 2021: loss $2,231,808, up from $1,124,340 a year earlier. Cash about $1.013m, debt free, after the $2.8m placement. Covers the Korhaan drilling and the Badimo restructure agreement already announced.
8 Mar 2022well test result● Neutral
Flow testing has started at Korhaan-4 after the storm-damaged pump was repaired, across a roughly 313m production section. No flow rates yet. Company says it is closer to funding from a major South African institution and off-take with Vutomi.
17 Feb 2022drilling progress report▼ Bad
All three Korhaan wells are logged, with similar geology and depths of 432-450m. A lightning strike on Korhaan-5 damaged the pump communications, suspending testing two weeks; flow tests now expected to resume in the last week of February. Delays the first flow rates.
4 Feb 2022drilling result▲ Good
Korhaan-5 (432m) has flowed gas and been logged, with about 133m of cumulative sand intervals; Korhaan-3 reached TD at 449m with strong gas shows and no groundwater inflow. Flow tests of 8-10 days per well are due to start 6 February. Flow rates still unmeasured.
27 Jan 2022resource reserve update▲ GoodMajor
Interpretation of the third aeromagnetic survey found 42 new gas-prospective compartments (264 km2), taking the total from 37 to 79 compartments covering 1,229 km2. These are prospective targets, not a booked resource.
24 Jan 2022drilling result▲ GoodMajor
Korhaan-5 reached 432m with gas throughout the production section, and Korhaan-3 hit substantial gas in its surface section at 177m. Korhaan-4 is logged and flow testing is due next week. The company claims a 100% gas discovery success rate; flow rates are still unmeasured.
12 Jan 2022drilling progress report● Neutral
Drilling resumed 10 January. Korhaan-4 is to be logged and then flow tested for at least a week; Korhaan-5 and Korhaan-3 follow, with Korhaan-3 now to use air/percussion rather than mud. Aeromagnetic interpretation is under way. No new results.
24 Dec 2021business combination▲ GoodMajor
Binding agreements signed to lift Kinetiko's Afro Energy stake from 49% to 100% by issuing 597,704,812 shares to Badimo, who would hold about 46% afterwards. Needs shareholder approval and an independent expert report. Resolves the May terms sheet into binding documents.
23 Dec 2021joint venture update▲ GoodMajor
Afro Energy signs a non-final terms sheet for a 50/50 JV with Vutomi Energy to generate and sell electricity using Afro gas and a free-loaned 1MW engine. A binding agreement is to be negotiated within 90 days. A small first step toward gas sales, not the gas traders' off-take.
20 Dec 2021drilling result▲ GoodMajor
Korhaan-4 reached 443m, the longest production interval in the Amersfoort area, with robust gas flows observed under choked conditions. Regulated flow testing is planned for early January 2022. A first positive result from the new campaign, though not yet a measured flow rate.
20 Dec 2021admin correction● Neutral
Share registry Automic notifies that its Perth office moves to 191 St Georges Terrace from 20 December 2021. Administrative only.
7 Dec 2021drilling progress report● Neutral
Storms and cementing-tool delays slowed drilling. Korhaan-3 is suspended at 102m until January 2022. Gas shows were noted at the base of the dolerite in each well. The 564 km2 aeromagnetic survey is complete, with processing due December-January.
25 Nov 2021drilling spud● Neutral
Third well, Korhaan-3, spudded, completing the three-well program's spuds for the year. Korhaan-4 is to drill into the gassy zones within days; Korhaan-5 has cased to about 150m. No flow results yet.
16 Nov 2021drilling spud● Neutral
Second well, Korhaan-5, spudded (air to 150m, then rotary mud to about 450m). Korhaan-4 is paused after casing to about 130m awaiting cementing hardware, and Korhaan-3 is now expected within days after Korhaan-4 reaches depth.
4 Nov 2021drilling spud▲ GoodMajor
First of three Korhaan wells, Korhaan-4, spudded using air/percussion drilling to about 450m, ending the long gap in new drilling. Korhaan-3 is expected the week of 15 November; flow rates will be assessed after Korhaan-4 completes.
20 Oct 2021drilling scheduled▲ Good
A drilling contractor (Torque Africa) is engaged for the three-well Korhaan program, drilling to 400-450m, with the first rig spudding as early as next week and drilling due to finish by early December. The largest-ever aeromagnetic survey has also started flying.
30 Sept 2021annual report● Neutral
Annual report for the year to 30 June 2021 (text provided is only the front section: directors and corporate directory). Financial results are not visible in the supplied text.
30 Sept 2021other● Neutral
Appendix 4G corporate governance checklist lodged with the annual report for FY2021. Administrative filing with no new business information.
