Kinetiko Energy Ltd (ASX:KKO) has been granted a trading halt by the ASX ahead of the release of an acquisition announcement.
In its application to the ASX halt, Kinetiko said: “The company requests a trading halt immediately, pending the release of an announcement in relation to a significant acquisition.”
Securities will remain halted until the start of normal trading on Friday, May 7, 2021, or until an announcement is released to the market.
Productive quarter
The company enjoyed a productive March quarter that has set the stage for first production and revenues in the near term at its Amersfoort Project in South Africa.
Activities are carried out through Afro Energy (Pty) Ltd, in which Kinetiko holds 49%.
During the quarter, as a result of being granted a bulk gas production and removal permit, Afro Energy began preparing a short-term pilot gas production program.
This is expected to see gas produced from well KA-03PTR and possibly well KA-03PT2 (adjacent) sold to domestic CNG trader(s) for transportation from the well site for distribution to industries in the Johannesburg region.
With the recent successful gas flow rate testing on Well KA-03PTR, Afro Energy is strategically positioned to complete an offtake agreement and commence commercial production.