• Exploration Rights 270, 271 and 272 have been renewed for a second term, securing tenure for development plans 
• PASA granting letters received, confirming a second renewal period of 2 years 
• Drilling of production test well 271-KA03PT06 has intersected gassy sandstone zones, terminal depth anticipated within 7 days 
• Flow testing of production well 271-KA03PT10 is continuing successfully, with results expected within 14 days 
• Renewals underpin Kinetiko’s accelerated development strategy and pilot production program

Kinetiko Energy is developing an energy solution for South Africa, focused on commercialising 100% owned advanced shallow conventional gas projects in the Mpumalanga Province.  

Kinetiko is pleased to advise that exploration rights for each of ER270 comprising 1,659 km², ER271 comprising 835 km² and ER272 comprising 489 km² have been granted a 2-year renewal. Kinetiko’s tenement landholding under exploration right, including ER383, totals 5,366 km². 

Kinetiko Executive Chairman Adam Sierakowski commented: 
"The renewal of the existing exploration rights shows further the regulatory support by the South African government and the granting authority, the Petroleum Agency of South Africa, for Kinetiko’s natural gas opportunity to provide a long-term energy solution for South Africa. 

These renewals come at a pivotal time as the Company’s exploration and pilot production plans from the Brakfontein field accelerate.  

Building on the success of our optimised drilling program, we will extend production testing into ER272 near Sasol’s Secunda refinery and ER270 near the Majuba power station and Lily pipeline, reinforcing our strategy to supply multiple development sites adjacent to existing customers.”

Renewal Letter Details

The Company, having made an application for the further renewal of exploration rights in respect of its existing rights ER 270, 271, and 272, received three letters from the Petroleum Agency of South Africa (PASA) relating to each individual exploration right, advising that the application for the second renewal had been granted.
 
The granting letters, dated between 21-29 August 2025, stipulate that the duration of the renewal (2 years) would commence from the date of issue. The applications for the renewals made by the Company contained detailed work programs that enable significant further exploration, including core and production test well drilling and exploration to be undertaken on each of ER270, 271 and 272. 

Current Operations 

Drilling of production test well KA03PT06 at Brakfontein is progressing to plan, with gassy sandstone intersections encountered and terminal depth expected within seven days. Flow testing of production well KA03PT10 is continuing successfully, with stabilised flow rate results expected within 14 days. 

Success is expected to further de-risk future drilling and accelerate Kinetiko’s transition from exploration to production, positioning the Company as a key contributor to South Africa’s energy future.