- 01BSP due October; approval targeted Q1 2027.
- 02Phase 1 CNG engineering advances; Cluster 2 drilling planned early 2027.
- 03CEO shortlist: three candidates.
Kinetiko Energy (ASX: KKO) is preparing to lodge a bulk sampling permit (BSP) application for its Brakfontein gas project in South Africa by the end of October, advancing its pathway towards initial gas sales.
The company expects the Petroleum Agency of South Africa (PASA) to take three to four months to assess the application, with approval targeted for the first quarter of 2027.
The permit would allow limited gas production and sales while Kinetiko pursues broader production approvals for its wholly owned shallow conventional gas assets.
Alongside permitting, detailed engineering is underway for the first Brakfontein production cluster, with a supplier selection and further drilling preparations progressing towards early 2027.
Permitting Pathway
The BSP application is being finalised for submission to PASA, providing an intermediate commercialisation step before the larger production right is secured.
Kinetiko is separately preparing a production right application (PRA) covering all of ER271, which is intended to accommodate multiple production clusters.
An environmental impact assessment (EIA) supporting the PRA has commenced, and the initial drilling of water-monitoring wells is complete.
“Kinetiko is making steady progress across each of the workstreams needed to take Brakfontein from exploration to production,” executive chair Adam Sierakowski said.
“In parallel, engineering and procurement for the Phase 1 CNG cluster are advancing, and we have narrowed down the location of our next well, which will inform the second cluster under our Rolling Cluster Development Strategy.”
Second Cluster Planning
Concept design is complete for the Brakfontein Phase 1 Cluster, which will connect existing wells to a central manifold and a mobile modular compressed natural gas (CNG) facility.
Detailed engineering has begun, with a preferred CNG facility supplier shortlisted ahead of a contract award and front-end engineering scheduled for the fourth quarter of 2026.
Meanwhile, geological and reservoir modelling has narrowed the site selection for the next development well to three potential locations.
That well will help determine the position of Cluster 2 under the rolling development strategy, with drilling targeted to begin early in 2027.
Procurement of long-lead equipment is progressing, with delivery currently scheduled for February 2027 ahead of the proposed drilling campaign.
CEO Search Ongoing
Kinetiko has also completed the search phase for a new chief executive officer, shortlisted three candidates and expects to finish the selection process during October.
The company is concurrently discussing land access compensation with renewable energy developers whose proposed projects may overlap ER271 or ER272.
Those discussions follow a settlement with Mulilo concerning the Newcastle wind energy facility, under which Kinetiko subsidiary Afro Energy will receive the rand equivalent of A$1.26 million in non-dilutive cash consideration.
For the near term, its principal milestones remain lodging the BSP, advancing the PRA and EIA, finalising CNG procurement, and choosing the Cluster 2 drilling site.
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