Kinetiko Energy Ltd. provided the following update on its onshore gas exploration and production development activities. Core hole 271-23C, spudded on 21 September 2022 in the vicinity of Majuba power station, has completed gas desorption testing and wireline logging results indicate significant potential for gas field development. Approximately 64km further south, core well 270-06C has intersected strong gassy geology with the hole currently below 445m and still penetrating gassy sandstone beds.

Eleven coal samples are continuing to desorb in test canisters. Two are over 11m³/tonne and rising. The sample above (still desorbing) has already set a new project record for as-received gas content.

The wireline logs show a gas-effect crossover of 131.5m of sandstone pay between 225-473m, sandwiched between carbonaceous formations. The wireline log shows four (4) major features of the 271-23C exploration hole near the Majuba Power Station: The dolerite sill cap rock provides a vertical gas seal down to 226m above the sedimentary rock below. The low natural gamma radiation in the top half is highlighted yellow to emphasise the sandstone reservoir layers.

At the bottom the seams of coal are displayed with low density. And the best feature of all is in the middle, the gas-effect crossover in the sandstones, shaded red, interbedded with carbonaceous layers without the gas effect. Below the dolerite, most of the formations are either gas source rock or gas reservoir rock.

Exploration Update 270-06C: Core hole 270-06C is currently coring at below 445m and still penetrating gassy sandstone beds, having drilled through capping dolerite to 241m before breaking through into carbonaceous and sandstone zones. The company aware, from aeromag surveys, that the dolerite sill undulates and it have encountered a thick sill section in this borehole. Historical exploration indicates that thicker sills can produce deeper sandstones with higher gas volume and pressure.

Onsite gas emission and desorption analysis is being performed on the core samples. On completion of the drilling the Company will log the borehole, collect sandstone samples and analyse the results, tying in with regional stratigraphy and extending the proven gas resource. At this time, whilst the drilling continues, it is already clear that it have another gas discovery hole over 30kms beyond it previous gas discoveries in southern ER271.