KKO (ASX) Ann: Trading Halt

Originally posted by Exceptional1 ↑

Very excited to see the what this new announcement will detail, my predictions are that it will be an acquisition of the balance of the project so KKO will have full control.

In chronological order, the company has consistently achieved the below milestones in the lead up to becoming a full scale gas producer:
· Renewal of exploration rights for ER56 and ER38
· Three new exploration rights granted, increasingcompany’s total exploration rights by 387% (ER270, ER271 & ER272
· Entitlement offer, showing strong support from shareholders, raised over $2.7m
· Gustavson Associates appointed to undertake updated resource report on all exploration rights
· High Resolution Aeromagnetic survey of ER56 identified 10 new geologically defined compartments analogous to the gas prone compartments in the adjacent pilot field area taking the total compartments on ER56 to 20. The survey data also shows deep basement structures that could be localised conduits for helium into the overlying Karoo sandstone conventional gas accumulations.
· High Resolution Aeromagnetic survey of ER58 also identified new geologically defined compartments, increasing the number ofpotential production fields to 30 in both ER38 and ER56.
· Gustavson Associates report significant gasresource growth more than triples by 227%. Contingent Resource (2C)increased from 1.5Tcf to 4.9Tcf up 227% and Prospective Resource (GIP)increased from 2.4Tcf to 9.3Tcf up 287%.
· Awarded rights to produce and sell gas from ER56 & ER38
· Following strong shareholder support, a majority of the Company’s unlisted $0.03 options have been exercised well before their expiry date of 31 December 2021, totalling an additional $1.26m in fundsbeing raised.
· Pilot production well workover and commissioning programme completed for first gas off-takes from well KA-03PTR, cleaning works begin..
· Access road and terminal landing upgrade completed in anticipation of pilot gas production.
· Initial interpretation on a third high resolution aeromagnetic survey across the Amersfoort project has been completed. The new area is ER271, linking the survey area between ER38 & ER56 into one masssurveyed area. Six new potential gas compartments have been identified in the survey area ranging in size from 5.7km2 to 22.5km2 and in total 77km2. Thetotal gas compartments identified on the Amersfoort Project has now reached 37and 257km2.
· Successful production flow tests from well KA-03PTR proves initial absolute open flow (IAOF) gas rates of up to 650Mscfd with average gas flow rates during test period of 190 Mscfd and highquality gas content consistently measured above 96% methane. The resultsconfirm ability of Well KA-03PTR to immediately be taken into production.

What’s still tocome?
· Off-takeagreement.
· Platformset for first Production, Revenues and Reserves in Q2/Q3 2021. The company ismoving “aggressively to close advanced negotiations with potential gas off takers.”
· Strong funding initiatives ongoing. The Company continues to advance discussions from funding institutions both inside South Africa and abroad to fund through debt and equity in the Amersfoort project development. The company has continued to hint IDC are still on the cards here, my assumption being they will fund first reserves for us = no KKO spend to get to first reserves. KKO owning 100% of the project will no doubt help secure this funding, rapidly.
· Interpretation of the third / most recent aeromagnetic survey to identify the increase in contingent and prospective resource of ER 271, forming a new total across the connected ER38, ER56 & ER271 surveyed areas.

What’s else isappealing?
· If myassumption is correct it will be much more appealing to large investor groups,particularly internationals, if the project is fully owned by KKO.
· It willbe much easier to gain project financing if the project is fully owned by KKO.
· Let’slook at the comparative benchmarks – STX (SP = 0.360), RLT (SP = 2.11) , EXR (SP= 0.395). Current mkt cap of KKO is ~$65m (double that for 100% control = $130m).RNG mkt cap is ~$250m, EXR mkt cap is ~$300m, STX is ~$721m (and they only own50% of the project). Effectively, our share price should at least double – not tomention all these comparative companies are nowhere near as developed as we are,nor do they have anywhere near the in ground onshore resources (easilyaccessible and surrounded by existing required infrastructure) as KKO does.

There has also beenan abundant amount of news expressed throughout SA (and globally) regarding theappetite for gas. To name a few very obvious indicators:
· Total havepulled out of neighbouring off-shore projects in Mozambique
· Thecancellation of an $825m (USD) new coal power plant in Dec 2020.
· Theloosening of and amendments being made to legislation in order to expiditeresource exploration and production.
· Gasbeing noted as the desparetly needed transition energy to take the country fromcoal power to green energy.
· Gasprices globally continuing to climb.
· Etc.etc – review thread https://hotcopper.com.au/threads/research-interviews-news-wrap.5812039/#post-52641787for more info.

When will themasses wake up and understand just how UNDERVALUED this stock is? We all havethose stories we tell that start with “I wish I got in X before the share pricetook off.” Considering how we are currently positioned with KKO, take advantagenow and turn what would otherwise be another one of those stories into your fairy-tale ending!

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Except, Been on board since Mar 2013 circa .30 + so your update is most welcome, if there is a C R/SPP then I will take the opportunity to participate and average down.
Always thought the they were on to a good thing as my reason for investing but little communication from that lead to the S P declining to .02 c not good but hope that that is all behind us.
Thanks again and if you have the inclination I and Im sure others would appreciate any heads up.

(20min delay)
Last 11.0¢		Change 0.012(12.2%)		Mkt cap ! $157.5M

Open	High	Low	Value	Volume
9.7¢	11.0¢	9.7¢	$88.57K	863.7K

No.	Vol.	Price($)
1	20000	0.105
1	158848	0.095
2	382666	0.092
3	160631	0.090
1	23100	0.086

Price($)	Vol.	No.
0.110	87688	1
0.115	120000	1
0.120	225000	1
0.150	248024	2
0.000	0	0

Ann: Trading Halt, page-12

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