Kinetiko Energy (ASX:KKO) raises $1.7m for gas exploration activities

• Kinetiko Energy (KKO) closes its entitlement offer after raising $1.7 million to advance its gas exploration activities and its maiden gas reserves certification
• The company will issue 22.66 million new shares at a price of 7.5 cents each
• It has received expressions of interest from investors who may take up the shortfall shares
• In addition, KKO recently raised $2.7 million through a strategic investor, which will assist it in further progressing activities
• Shares are trading 6.25 per cent lower at 7.5 cents each at market close

Kinetiko Energy (KKO) has closed its entitlement offer after raising $1.7 million to advance its gas exploration activities and its maiden gas reserves certification.

The company will issue 22.66 million new shares at a price of 7.5 cents each.

The offer was originally seeking to raise up to $3.1 million with eligible shareholders able to subscribe for one new share for every 15 held.

The company has received expressions of interest from investors who may take up the shortfall shares.

In addition, KKO recently raised $2.7 million through a strategic investor, which will assist it in further progressing activities.

Executive Chairman Adam Sierakowski said he is pleased with the outcome.

“Funds raised will be used to aggressively advance the company’s onshore gas exploration activities including the drilling of further wells to compliment the three wells recently completed at the Korhaan project,” he said.

“In addition, the funding will advance the short term gas production ambitions and certifying maiden gas reserves.”

Shares were trading 6.25 per cent lower at 7.5 cents each at market close.