Kinetiko Energy : Presentation - UK Conferences

SOUTH AFRICA'S

TRANSITION

ENERGY SOLUTION

			Company Presentation UK Conferences | March 2024
GET IN TOUCH
	Adam Sierakowski	Richard Wolanski
Nick de Blocq	ASX:KKO
CEO	Executive Chairman	Corporate Finance
[e-mail]	[e-mail]	[e-mail]	KINETIKO.COM.AU

	Enormous Onshore Gas Resource in premier	2
	energy producing zone of South Africa

Resource/Reserves:

 Resource - 6.0TCF (2C)*

• Prospective Resource - 5.8TCF (2U)*
• Reserve - 6.4 BCF (2P)* assessed over pilot production field underpinned by initial IDC JV
• Reserve based on <0.2% (1/500th) of granted tenements*
• Sproule Report on website*

Located 200km south east of Johannesburg.

Adjacent to infrastructure:

• Power stations and coal mines:
• - Majuba - (4.1GW gas co-fired plant)
• SASOL Secunda Gas to Liquids Refinery
• Lily-1Pipeline (Sasol offtake feeder)
• Roads and Transmission lines

*Refer to slide 10 Resource and Reserves Table

South Africa Energy Crisis -

3

Right Commodity in the Right Place

The Right Commodity….

Significant landholding - greater than 6,000 km2

Gas is 96%-98% (measured) methane - remainder nitrogen

Conventional setting - Gas sits in sandstone, above the coals, sealed and compartmentalised into reservoirs by dolerite sill/dykes

No fracking or horizontal drilling - Not a CBM / Shale play

Tenements under application = 2,383km 2 - will grow resource materially 100% drilling success (all 44 holes have gas with large, shallow pay zones)

In the Right Place….

South African energy crisis - Daily rolling blackouts

Aging coal energy in decay, historically providing over 85% of power generation

Gas cliff = Aging Temane field (Mozambique) is in severe decline

Lack of alternatives (offshore/ CBM/renewables minimum 10 years away)

2022

Development Dynamics and Plan

Step 1: - Drilling to Confirm Gas Field Production Characteristics

Flow rate and depletion curve testing

Gas Resource and Reserve Increase

Step 2: - Identify Multiple Optimal Development Sites

Targeting highest flow rates near pipelines, power stations, refineries , transmission network to facilitate development sites

Step 3: - Micro-LNG plant proof of concept at Amersfoort

Drilling additional production holes at existing Amersfoort field cluster followed by installation of micro-LNG train

Step 4: - Development of SA's Largest Onshore LNG project*

IDC JV - 50MWe going to 500MWe
Fiscal Terms: (30% IDC/70% KKO)		AUD $140m for stage 1 (50MWe)
	AUD $90m equity
IDC providing AUD $51m (60%) of		≅

Option to expand to 1,500MWe

4

Amersfoort Development based on clusters of shallow production

holes feeding existing infrastructure or a series of micro LNG plants

*Announced August 2023

	Key Exploration Program Imminent	5

Commencing Q2 2024

Exploration Program about to commence- Drill 5 production/appraisal holes in southern fields ( 4 holes ER271, 1 hole ER270)

Prepare extended flow rate and gas depletion testing

Identify high flow rate gas zones and sites for development of production clusters

Complete site selection for additional production holes to drill proof of concept cluster at Amersfoort in northern ER 271

Continue negotiations with SA strategic development partners

Confirmation of Flow/Depletion Rates unlocks gas production development potential

	Clear Pathway to Value in the next Year	6

Q3 2024 into 2025

Flow rate and gas depletion testing results

Resource Upgrade

Seek substantial Gas Reserve upgrade (2P & 1P)

ER 320 Exploration Right grant will add significant resource upgrade potential

Production right grant ER271 primes first revenues in 2025

Deliver on IDC term sheet to start operations on delivery of 50MWe gas field

Potential listing in UK

Setting up the future development of South Africa's largest onshore gas field

Capital Structure

1,348,268,334	$0.075	$101m
Shares	Share Price (5 Mar 2024)	Market Cap
$3.9m	$96m
Cash (est. 31 Dec 2023)	Enterprise Value (EV)
30,750,000
3m options @ 0.09/10 exp 25
27.75m options @ 0.12 exp 26

KKO 100% owner of Afro Energy (Pty) Ltd*

KKO maintains BEE participation over 30%

Tight register with top 20 shareholders owning 70%

Successfully attracting South African and UK investors to the register

7

Share Price Performance (12 months)

$0.140

7,000,000

$0.120

6,000,000

$0.100

5,000,000

$0.080

4,000,000

$0.060

3,000,000

$0.040

2,000,000

$0.020

1,000,000

$-

3/30/23

4/14/23

4/29/23

8/12/23

9/11/23

10/26/23

1/9/24

1/24/24

-

2/13/23

2/28/23

3/15/23

5/14/23

5/29/23

6/13/23

6/28/23

7/13/23

7/28/23

8/27/23

9/26/23

10/11/23

11/10/23

11/25/23

12/10/23

12/25/23

2/8/24

Volume

A$ KKO Share Price

26%Shareholding

Directors

50%	SA Institutions

14%

Badimo (ex directos)

10%	Others
*Announced 21 September 2023

	Experienced Board & Management Team	8

Adam Sierakowski Nick de Blocq

Executive Chairman

CEO In-Country

Robert Scharnell	Don Ncube	Rob Bulder
Non-Executive Director	Non-Executive Director	Non-Executive Director

Richard Wolanski

Corporate Finance

Paul Doropoulos

Chief Financial Officer

Simon Whybrow

Company Secretary

Adam is a seasoned lawyer and founding director of Palisade Corporate and Trident Capital.

With a focus on corporate transactions, he has successfully navigated the landscape from private entities to listed public companies.

Adam's expertise lies in capital raising, ASX transactions, and developing assets and corporate structures for major companies both in Australia and overseas.

With over 21 years of experience in the legal field, he has also held director positions in ASX listed companies, further demonstrating his deep understanding of the industry.

Nick has over 35 years of experience as an Engineer and Manager in the Upstream Oil and Gas industry in various senior roles, including Multi- Country Operations & Functions Management and Regional Business Development with Schlumberger, Africa VP with an American corporate and COO with a Regional Solutions supplier in West Africa.

Nick has consulted to the SA Government on the localisation of industry and sat on the National Ports Authority advisory panel to bring an oil and gas aspect to their marketing strategies.

Robert is an experienced international business executive with over 30 years of demonstrated achievement at Chevron Corporation in establishing and implementing business strategy. He has conducted business in over 20 countries and under complex situations, for large values including negotiating multi-lingual agreements, sales/purchase transactions, and settling claims and disputes on the scale of over $1 billion in value.

His breadth of experience extends beyond the core energy business, with a career highlight in managing the creation and implementation of an award- winning economic development and social impact project in Africa. This project transformed Chevron's approach to improving lives within the communities in which it operates.

Donald has a master's degree in Manpower Studies from the University of Manchester.

Mr Ncube is recognised and respected as one of the reputable pioneers of Black Economic Empowerment. He is the founder and former Chairman and Chief Executive Officer of Real Africa Holdings (Pty) Ltd, a listed company on the JSE.

Mr Ncube carved his professional career in the mining industry. He worked for the Anglo-American Corporation for 22 consecutive years and was the first South African black to sit on the Board of Anglo-American Corporation. Mr Ncube has a performance track record as Chairman of successful corporations such as Sun International, Oceana Fishing Group, South African Airways and Atomic Energy Corporation.

Rob qualified as a Chartered Accountant in 1987 and has over 30 years of commercial experience.

Mr Bulder has held numerous senior management and executive board positions in the manufacturing, financial services, IT, airline and gas industries, overseeing multi-billion Rand budgets. These positions included that of Group Financial Director of Paragon Business Communications Ltd, a company listed on the Johannesburg Stock Exchange, as well as the position of (acting) Executive Vice-President of South African Airways SOE and CEO of South African Airways Technical Division (Pty) Ltd, a multi-billion Rand division of SAA Ltd and that of the Vice President of Business Development for SAA Ltd.

Richard Wolanski, B.Com, ACA, is a Chartered Accountant with qualifications that include a Bachelor of Commerce from the University of Western Australia.

Richard has over 30 years professional experience in the finance and mining industries at an international level. He has provided corporate, strategic and financial advisory assistance to public companies in Australia, Singapore and the United Kingdom.

Paul is an Executive Consultant with over 20 years experience in providing strategic guidance to ASX listed companies in the oil, gas, and mining services sectors.

He has played pivotal roles in the successful ASX listings of companies like Metaliko Resources Ltd (2010), Kinetiko Energy Limited (2011), and Swift Networks Limited (2016).

Additionally, Paul has held executive and non-executive board positions, including CFO responsibilities, in various ASX listed companies.

Paul holds a Bachelor of Business Degree (Finance).

Simon is a highly driven and dedicated professional with a wealth of experience as a CFO, Company Secretary, and Commercial Manager.

His key strengths lie in financial administration and control, boardroom practices, corporate and business strategy, process improvement, and general management.

Simon also specialises in overseeing financial operations and ensuring effective administrative processes. His expertise extends to implementing sound corporate governance practices and contributing to strategic decision-making.

This presentation was approved for release by the Board of Kinetiko Energy Limited.

St Martins Tower, Level 24,

44 St George's Terrace, Perth WA www.kinetiko.com.au

[e-mail]

@Kinetiko_KKO

Adam Sierakowski

Executive Chairman

[e-mail] [phone]

Richard Wolanski

Corporate Finance

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B R I N G I N G G A S T O S O U T H A F R I C A N M A R K E T

A S X : K K O

Resources and Reserves*

1 0

Total Contingent Resources Calculated for the Three Kinetiko Licenses (in Bcf, Gross)

License	1C	2C	3C
Total CBM and SST CR	2,846.0	6,031.4	17,429.1

Prospective Convectional Resources Calculated for the Three Kinetiko Licenses (in Bcf, Gross)

License	1U	2U	3U
ER 271	-	-	-
ER 270	3,201	5,413	8,396
ER 272	303	406	529
Total	3,504	5,819	8,925

Summary of Net Gas Reserves for ER 271 Gas Field Development Project (Gross)

					Proved +	Proved +
	PDP	PDNP	PUD	Total Proved	Probable +
	(1P)	Probable	Possible
				(2P)
					(3P)
Gas (MMCF)	0.0	655.3	3,276.5	3,931.8	6,427.5	10,047.4

*Refer Announced 21 August 2023. The Company confirms that it is not aware of any new information or data that materially affects in information included in this market announcement and that all material assumptions and technical parameters underpinning the estimates continue to apply and have not ,materially changed.