- Kinetiko Energy (KKO) enters into agreements to increase its interest in Afro Energy to full ownership
- The Perth energy company will up its 49 per cent interest to 100 per cent by issuing 598 million shares to the current owners Badimo Gas
- Afro holds 100 per cent interest in the exploration rights and sample gas production permit in South Africa
- However, KKO will need shareholder approval for the purchase to go through
- On the market this morning, KKO is down two per cent and trading at 9.8 cents per share
Kinetiko Energy (KKO) has entered into agreements to increase its interest in Afro Energy to full ownership.
The Perth energy company will up its 49 per cent interest to 100 per cent by issuing 598 million shares to the current owners Badimo Gas.
Afro holds 100 per cent interest in the exploration rights and sample gas production permit in South Africa.
However, KKO will need shareholder approval for the purchase to go through.
KKO Executive Chairman Adam Sierakowski commented on the purchase.
“This union between the historic joint venture partners represents the achievement of a major milestone for the derisking of the development of what is potentially the largest on shore gas project in South Africa,” he said.
“Years of significant cooperation between the Badimo and Kinetiko teams have enabled this acquisition to be realised and will result in delivering substantial shareholder value.”
Badimo Gas Executive Chairman Don Ncube also commented on the deal.
“We have worked for over a decade to explore and develop a significant onshore non-fracking gas project in the Mpumalanga, Orange Free State and Kwazulu-Natal regions of South Africa,” Mr Ncube said.
“The creation of a project which delivers abundant clean energy will greatly assist South Africans whose economy faces an energy crisis. This merged entity will now be able to raise capital for accelerated exploration, production and downstream development in international markets.”
On the market this morning, KKO was down two per cent and was trading at 9.8 cents per share at 12:31 pm AEDT.