Kinetiko Energy Limited, listed on the Australian stock exchange, announced on 13 June 2023 the successful drilling of two core holes in their exploration right area ER272 as part of their accelerated drilling programme. Herewith the link to their public announcement. Strong Gas Results from First Core Wells on Er272 near largest energy infrastructure. Therein, Kinetiko’s CEO comments as follows:

“It is always very rewarding to enter a new exploration block and have such an unexpectedly high level of success in the initial core holes. The TD (Terminal Depth) was shallower than what we encountered further south, just as predicted, due to the sloping nature of the Karoo basement structures; so the logged stratigraphy returning over 100m of gassy pay in both 272-01C and 272-02C was a most encouraging outcome. We are in the process of moving the two core rigs to sites 272-06C and 272-08C due to the logistical expedience of proximity, and we have no reason to expect anything but success from these core holes as well. Of course, the strategical placement of the current exploration effort so close to Secunda is obvious. Sasol runs one of the world’s biggest and best Coal-To-Liquids plant at Secunda, and they have stated their need to move towards a Gas-To-Liquids conversion as they reduce pollution whilst increasing the quantum of their fuels output going forward. We absolutely expect to be a large part of that positive evolution towards greener liquid fuels.”

These drilling successes expands our understanding of the geology of the Permian aged Karoo coal basin, increases onshore potential gas resources and further reduces exploration risk in the surrounding areas.  It is worth noting that one of Bastion’s blocks (reference 369ER on the map below) borders Kinetiko’s ER272 to the east, measuring 2061km^2., approximately 3 times the size of ER272.

To the south of ER272 lies Bastion’s affiliate, Bulwark’s technical cooperation permit area (reference 209TCP on the map below) measuring 1242km². These results fall in line with our belief that onshore gas, in close proximity to Sasol’s Secunda, have the potential to supply them with readily available gas and facilitates Sasol’s desire to transition to gas as primary feedstock.

As Bastion continues to de-risk its onshore gas opportunities through intelligent exploration, we look forward to partnering with like-minded companies, development finance institutions and industry as joint venture partners, financiers, contractors and gas off-takers who like us consider this a worthwhile endeavour.

For more information please contact the undersigned at barrisford@bastionoil.com or info@bulwarkoil.co.za

Barrisford Petersen
Founder and Managing Director
Bastion Oil and Gas South Africa (Pty) Ltd
Bulwark Oil And Gas Sa (Pty) Ltd
Rockit Energy (Pty) Ltd

LEGAL DISCLAIMER

DISTRIBUTION OF THIS DOCUMENT MAY BE RESTRICTED BY LAW. ACCORDINGLY, THIS DOCUMENT MAY NOT BE DISTRIBUTED IN ANY JURISDICTION EXCEPT IN ACCORDANCE WITH THE LEGAL REQUIREMENTS APPLICABLE TO SUCH JURISDICTION. IN PARTICULAR, YOU MAY NOT DISTRIBUTE, FORWARD, REPRODUCE, TRANSMIT OR OTHERWISE MAKE AVAILABLE THIS DOCUMENT OR DISCLOSE ANY INFORMATION CONTAINED IN IT OR CONVEYED DURING ANY ACCOMPANYING ORAL PRESENTATION (THE “INFORMATION”), IN WHOLE OR IN PART, DIRECTLY OR INDIRECTLY IN ANY JURISDICTION WHERE TO DO SO WOULD BE UNLAWFUL. FAILURE TO COMPLY WITH THESE RESTRICTIONS MAY CONSTITUTE A VIOLATION OF APPLICABLE SECURITIES LAWS. PERSONS INTO WHOSE POSSESSION THIS DOCUMENT COMES ARE REQUIRED BY THE COMPANY TO INFORM THEMSELVES ABOUT AND TO OBSERVE ANY SUCH RESTRICTIONS. NEITHER BASTION OIL AND GAS SOUTH AFRICA (PTY) LTD (INCLUDING ITS AFFILIATE BULWARK OIL AND GAS SA) (“COMPANY”) NOR ITS DIRECTORS, OFFICERS, EMPLOYEES, RESPECTIVE AFFILIATES, AGENTS OR ADVISERS ACCEPT ANY LIABILITY TO ANY PERSON IN RELATION TO THE DISTRIBUTION OR POSSESSION OF THIS DOCUMENT IN OR FROM ANY JURISDICTION.

The Document and the Information have been prepared by or on behalf of and is the sole property of the Company. The Information is being provided to you is not a complete record. The Information does not purport to be full or complete and does not constitute investment advice. No representation or warranty, express or implied, is given by or on behalf of the Company, its affiliates, agents or advisers or any other person as to, and no reliance may be placed for any purposes whatsoever on, the adequacy, accuracy, completeness, fairness or reasonableness of the Information. None of the information has been independently verified by the Company, its affiliates, agents or advisers or any other person, and no liability or responsibility whatsoever is accepted by any of them for any loss howsoever arising, directly or indirectly, from any use of the Information or otherwise arising in connection therewith. The Company, its affiliates, agents and advisers do not undertake and are not under any duty to update this Document or to correct any inaccuracies in the Information which may become apparent or to provide you with any additional information.

The sole purpose of this Document is to provide background information to assist you in obtaining a general understanding of the business of the Company. This Document does not constitute an offer to sell, or a solicitation of an offer to buy or subscribe for, securities of the Company in any jurisdiction. It is not intended to provide the basis of any investment decision, financing or any other evaluation and is not to be considered as a recommendation by the Company, its affiliates, agents or advisers that any recipient of this Document purchase or subscribe for any securities in the Company. Each recipient of this Document contemplating any investment in the Company is required to make and will be deemed to have made its own independent investigation and appraisal of the business, results of operations, financial condition, liquidity, performance and prospects of the Company and the merits and risks of an investment in the securities of the Company. The delivery of this Document at any time does not imply that the information in it is correct as of any time after its date, or that there has been no change in the business, results of operations, financial condition, liquidity, performance and prospects of the Company since that date and no obligations is accepted to update any such information after the date of the Document. No person affiliated with the Company, their directors, officers, employees, respective affiliates, agents or advisers has been authorised to give any information or to make any representation not contained in this Document and, if given or made, such information or representation must not be relied upon. This Document may contain forward-looking statements, including, but not limited to, statements as to the Company’s business, results of operations, financial condition, liquidity, performance and prospects and trends and developments in the markets in which the Company operates. Forward-looking statements include all statements other than statements of historical fact and in some cases may be identified by terms such as “targets”, “believes”, “expects”, “anticipates”, “estimates”, “aims”, “intends”, “will”, “may”, “would”, “could” or, in each case, their negative or comparable terms. By their nature, forward-looking statements involve risk and uncertainty because they relate to future events and circumstances that may or may not occur. Several factors, which may be beyond the control of the Company, its affiliates, agents and advisers, could cause actual results and developments to differ materially from those expressed or implied by the forward-looking statements. Forward-looking statements in this Document reflect the Company’s view with respect to future events as at the date hereof and are subject to known and unknown risks, uncertainties and assumptions relating to the Company’s operations, results of operations, financial condition, growth, strategy, liquidity and the markets in which the Company operates. No assurances can be given that the forward-looking statements in this Document will be realised. Forward-looking statements are not guarantees of future performance. The Company, its affiliates, agents and advisers undertake no obligation and do not intend to update any forward-looking statements in this Document to reflect events or circumstances after the date of this Document.

The recent Renergen announcement dated 7 June 2023, bodes well for exploration and development of onshore gas in South Africa. Phase 2 Senior Debt Approval

The announcement states that Renergen, subject to standard conditions, has secured a debt package of US$ 750 million for funding the bulk of its Phase 2 Virginia onshore gas production project.  Even more important is that Standard Bank, a South African bank, will provide US$ 250 million of the debt package.

Not only is this a significant investment into South Africa, but also a vote of confidence in onshore gas exploration and development.  The bulk of the debt funding, US$ 500 million, will be provided by an American finance corporation whom I am sure have done the necessary and required due diligences and found South Africa to be a worthwhile investment destination.

For South Africa’s onshore gas industry, this clearly indicates that a tipping point has now been reached and a strong message is being sent to other South African banks and financing institutions that they need to be involved in onshore gas exploration and development.  We certainly hope that this is followed up by positive announcements from Kinetiko Energy Limited with their proposed Amersfoort gas development project.  We wish Renergen and the teams that made this possible ongoing success.

As Bastion continues to de-risk its onshore gas opportunities through intelligent exploration, we look forward to partnering with like-minded companies, development finance institutions and industry as joint venture partners, financiers, contractors and gas off-takers who like us consider this a worthwhile endeavour.

For more information please contact the undersigned at barrisford@bastionoil.com or info@bulwarkoil.co.za

Barrisford Petersen
Founder and Managing Director
Bastion Oil and Gas South Africa (Pty) Ltd
Bulwark Oil And Gas Sa (Pty) Ltd
Rockit Energy (Pty) Ltd

LEGAL DISCLAIMER

DISTRIBUTION OF THIS DOCUMENT MAY BE RESTRICTED BY LAW. ACCORDINGLY, THIS DOCUMENT MAY NOT BE DISTRIBUTED IN ANY JURISDICTION EXCEPT IN ACCORDANCE WITH THE LEGAL REQUIREMENTS APPLICABLE TO SUCH JURISDICTION. IN PARTICULAR, YOU MAY NOT DISTRIBUTE, FORWARD, REPRODUCE, TRANSMIT OR OTHERWISE MAKE AVAILABLE THIS DOCUMENT OR DISCLOSE ANY INFORMATION CONTAINED IN IT OR CONVEYED DURING ANY ACCOMPANYING ORAL PRESENTATION (THE “INFORMATION”), IN WHOLE OR IN PART, DIRECTLY OR INDIRECTLY IN ANY JURISDICTION WHERE TO DO SO WOULD BE UNLAWFUL. FAILURE TO COMPLY WITH THESE RESTRICTIONS MAY CONSTITUTE A VIOLATION OF APPLICABLE SECURITIES LAWS. PERSONS INTO WHOSE POSSESSION THIS DOCUMENT COMES ARE REQUIRED BY THE COMPANY TO INFORM THEMSELVES ABOUT AND TO OBSERVE ANY SUCH RESTRICTIONS. NEITHER BASTION OIL AND GAS SOUTH AFRICA (PTY) LTD (INCLUDING ITS AFFILIATE BULWARK OIL AND GAS SA) (“COMPANY”) NOR ITS DIRECTORS, OFFICERS, EMPLOYEES, RESPECTIVE AFFILIATES, AGENTS OR ADVISERS ACCEPT ANY LIABILITY TO ANY PERSON IN RELATION TO THE DISTRIBUTION OR POSSESSION OF THIS DOCUMENT IN OR FROM ANY JURISDICTION.

The Document and the Information have been prepared by or on behalf of and is the sole property of the Company. The Information is being provided to you is not a complete record. The Information does not purport to be full or complete and does not constitute investment advice. No representation or warranty, express or implied, is given by or on behalf of the Company, its affiliates, agents or advisers or any other person as to, and no reliance may be placed for any purposes whatsoever on, the adequacy, accuracy, completeness, fairness or reasonableness of the Information. None of the information has been independently verified by the Company, its affiliates, agents or advisers or any other person, and no liability or responsibility whatsoever is accepted by any of them for any loss howsoever arising, directly or indirectly, from any use of the Information or otherwise arising in connection therewith. The Company, its affiliates, agents and advisers do not undertake and are not under any duty to update this Document or to correct any inaccuracies in the Information which may become apparent or to provide you with any additional information.

The sole purpose of this Document is to provide background information to assist you in obtaining a general understanding of the business of the Company. This Document does not constitute an offer to sell, or a solicitation of an offer to buy or subscribe for, securities of the Company in any jurisdiction. It is not intended to provide the basis of any investment decision, financing or any other evaluation and is not to be considered as a recommendation by the Company, its affiliates, agents or advisers that any recipient of this Document purchase or subscribe for any securities in the Company. Each recipient of this Document contemplating any investment in the Company is required to make and will be deemed to have made its own independent investigation and appraisal of the business, results of operations, financial condition, liquidity, performance and prospects of the Company and the merits and risks of an investment in the securities of the Company. The delivery of this Document at any time does not imply that the information in it is correct as of any time after its date, or that there has been no change in the business, results of operations, financial condition, liquidity, performance and prospects of the Company since that date and no obligations is accepted to update any such information after the date of the Document. No person affiliated with the Company, their directors, officers, employees, respective affiliates, agents or advisers has been authorised to give any information or to make any representation not contained in this Document and, if given or made, such information or representation must not be relied upon. This Document may contain forward-looking statements, including, but not limited to, statements as to the Company’s business, results of operations, financial condition, liquidity, performance and prospects and trends and developments in the markets in which the Company operates. Forward-looking statements include all statements other than statements of historical fact and in some cases may be identified by terms such as “targets”, “believes”, “expects”, “anticipates”, “estimates”, “aims”, “intends”, “will”, “may”, “would”, “could” or, in each case, their negative or comparable terms. By their nature, forward-looking statements involve risk and uncertainty because they relate to future events and circumstances that may or may not occur. Several factors, which may be beyond the control of the Company, its affiliates, agents and advisers, could cause actual results and developments to differ materially from those expressed or implied by the forward-looking statements. Forward-looking statements in this Document reflect the Company’s view with respect to future events as at the date hereof and are subject to known and unknown risks, uncertainties and assumptions relating to the Company’s operations, results of operations, financial condition, growth, strategy, liquidity and the markets in which the Company operates. No assurances can be given that the forward-looking statements in this Document will be realised. Forward-looking statements are not guarantees of future performance. The Company, its affiliates, agents and advisers undertake no obligation and do not intend to update any forward-looking statements in this Document to reflect events or circumstances after the date of this Document.

Regional technical studies of South Africa recently completed by Bastion’s geologist leave no doubt that the immediate solution to South Africa’s energy crisis is onshore gas.  Gas has been under South Africa’s feet having its origin in the abundance of coal seams trapped by a unique sequence of geology.  These technical studies, together with the onshore drilling success by Australian listed company Kinetiko Energy Limited’s subsidiary Afro Energy (Pty) Ltd, supports this premise.

Kinetiko’s more recent drilling successes are detailed in their April 2023 quarterly report (https://www.investi.com.au/api/announcements/kko/770aebdd-2a5.pdf).  Unknown to most, particularly those making decisions regarding South Africa’s future energy requirements and the sources thereof, is that Kinetiko has for the past 13 years been investing in South Africa and steadily conducting operations proving up the abundance of onshore gas.  A recent research report published on 1 May 2023 by MST Access (https://www.kinetiko.com.au/wp-content/uploads/2023/05/MST-Access-KKO-Update-1May23.pdf), states that Kinetiko has 4.9 TCF (trillion cubic feet) 2C contingent gas resources within its licensed areas of approximately 7000km² in the Mpumalanga region.  Contingent resources are those quantities of discovered gas resources estimated, as of a given date, to be potentially recoverable from known accumulations or deposits using established technology.

In September 2022, Renergen, listed on the South African and Australian Stock Exchange and the first holder of an onshore gas production right, became the first commercial producer of onshore gas converted to liquified natural gas (Virginia Gas Project, a game-changer for the South African economy).

The Elandsfontein power project successfully completed in 2022 with gas supplied by Sasol from its gas production operations in Mozambique, originally utilized coal.  It was converted to four 500KW gas engines now putting power in the municipal grid.  (Energas successfully completes turnkey gas power plant project).

With the increase in geological understanding of RSA onshore gas, exploration has now been significantly de-risked creating a new investment pathway in gas resources without the high risk usually equated to expensive offshore oil and gas exploration.  More importantly, onshore gas production projects are less capital intensive with shorter project completion time frames.  The market for gas in South Africa continues to grow and demand is expected to increase over the foreseeable future.  In an article published by “the African Report” in January 2023 Sasol, ambitious to reduce their greenhouse gas emissions, sees gas as a transition feedstock (South Africa: Sasol pins future on gas as a transition feedstock).

Bastion’s previous newsflash (RSA Onshore Gas: Keep the reasons for Onshore Gas Exploration simple (Part 2)) estimates that 1.2 TCF of proven gas reserves can power a 1000MW power station or ten 100MW power stations for 20 years.  As Kinetiko, Renergen, Bastion, Bulwark Oil and Gas SA (Pty) Ltd and other onshore exploration companies continue their technical studies, operations and exploration drilling, South Africa’s proven gas resource numbers will increase as the coal geology in South Africa consistently bears testimony.  It is common cause that solar together with gas is the perfect dispatchable power solution for South Africa’s electricity crisis and that gas is the clean energy resource necessary for industrial growth.  Gas in developing economies creates sustained growth opportunities, raises income levels and leads to poverty and unemployment reduction.

Bastion and Bulwark have in the last six months been in serious discussions and negotiations with a variety of potential investors and recently completed their internal prospective recoverable gas resources report which will be shared with shareholders and investors.  As Bastion continues to de-risk its onshore gas opportunities through intelligent exploration, we look forward to partnering with like-minded companies, development finance institutions and industry as joint venture partners, financiers, contractors and gas off-takers who like us consider this a worthwhile endeavour.

For more information please contact the undersigned at barrisford@bastionoil.com or info@bulwarkoil.co.za

Barrisford Petersen
Founder and Managing Director
Bastion Oil and Gas South Africa (Pty) Ltd
Bulwark Oil And Gas Sa (Pty) Ltd
Rockit Energy (Pty) Ltd

LEGAL DISCLAIMER

DISTRIBUTION OF THIS DOCUMENT MAY BE RESTRICTED BY LAW. ACCORDINGLY, THIS DOCUMENT MAY NOT BE DISTRIBUTED IN ANY JURISDICTION EXCEPT IN ACCORDANCE WITH THE LEGAL REQUIREMENTS APPLICABLE TO SUCH JURISDICTION. IN PARTICULAR, YOU MAY NOT DISTRIBUTE, FORWARD, REPRODUCE, TRANSMIT OR OTHERWISE MAKE AVAILABLE THIS DOCUMENT OR DISCLOSE ANY INFORMATION CONTAINED IN IT OR CONVEYED DURING ANY ACCOMPANYING ORAL PRESENTATION (THE “INFORMATION”), IN WHOLE OR IN PART, DIRECTLY OR INDIRECTLY IN ANY JURISDICTION WHERE TO DO SO WOULD BE UNLAWFUL. FAILURE TO COMPLY WITH THESE RESTRICTIONS MAY CONSTITUTE A VIOLATION OF APPLICABLE SECURITIES LAWS. PERSONS INTO WHOSE POSSESSION THIS DOCUMENT COMES ARE REQUIRED BY THE COMPANY TO INFORM THEMSELVES ABOUT AND TO OBSERVE ANY SUCH RESTRICTIONS. NEITHER BASTION OIL AND GAS SOUTH AFRICA (PTY) LTD (INCLUDING ITS AFFILIATE BULWARK OIL AND GAS SA) (“COMPANY”) NOR ITS DIRECTORS, OFFICERS, EMPLOYEES, RESPECTIVE AFFILIATES, AGENTS OR ADVISERS ACCEPT ANY LIABILITY TO ANY PERSON IN RELATION TO THE DISTRIBUTION OR POSSESSION OF THIS DOCUMENT IN OR FROM ANY JURISDICTION.

The Document and the Information have been prepared by or on behalf of and is the sole property of the Company. The Information is being provided to you is not a complete record. The Information does not purport to be full or complete and does not constitute investment advice. No representation or warranty, express or implied, is given by or on behalf of the Company, its affiliates, agents or advisers or any other person as to, and no reliance may be placed for any purposes whatsoever on, the adequacy, accuracy, completeness, fairness or reasonableness of the Information. None of the information has been independently verified by the Company, its affiliates, agents or advisers or any other person, and no liability or responsibility whatsoever is accepted by any of them for any loss howsoever arising, directly or indirectly, from any use of the Information or otherwise arising in connection therewith. The Company, its affiliates, agents and advisers do not undertake and are not under any duty to update this Document or to correct any inaccuracies in the Information which may become apparent or to provide you with any additional information.

The sole purpose of this Document is to provide background information to assist you in obtaining a general understanding of the business of the Company. This Document does not constitute an offer to sell, or a solicitation of an offer to buy or subscribe for, securities of the Company in any jurisdiction. It is not intended to provide the basis of any investment decision, financing or any other evaluation and is not to be considered as a recommendation by the Company, its affiliates, agents or advisers that any recipient of this Document purchase or subscribe for any securities in the Company. Each recipient of this Document contemplating any investment in the Company is required to make and will be deemed to have made its own independent investigation and appraisal of the business, results of operations, financial condition, liquidity, performance and prospects of the Company and the merits and risks of an investment in the securities of the Company. The delivery of this Document at any time does not imply that the information in it is correct as of any time after its date, or that there has been no change in the business, results of operations, financial condition, liquidity, performance and prospects of the Company since that date and no obligations is accepted to update any such information after the date of the Document. No person affiliated with the Company, their directors, officers, employees, respective affiliates, agents or advisers has been authorised to give any information or to make any representation not contained in this Document and, if given or made, such information or representation must not be relied upon. This Document may contain forward-looking statements, including, but not limited to, statements as to the Company’s business, results of operations, financial condition, liquidity, performance and prospects and trends and developments in the markets in which the Company operates. Forward-looking statements include all statements other than statements of historical fact and in some cases may be identified by terms such as “targets”, “believes”, “expects”, “anticipates”, “estimates”, “aims”, “intends”, “will”, “may”, “would”, “could” or, in each case, their negative or comparable terms. By their nature, forward-looking statements involve risk and uncertainty because they relate to future events and circumstances that may or may not occur. Several factors, which may be beyond the control of the Company, its affiliates, agents and advisers, could cause actual results and developments to differ materially from those expressed or implied by the forward-looking statements. Forward-looking statements in this Document reflect the Company’s view with respect to future events as at the date hereof and are subject to known and unknown risks, uncertainties and assumptions relating to the Company’s operations, results of operations, financial condition, growth, strategy, liquidity and the markets in which the Company operates. No assurances can be given that the forward-looking statements in this Document will be realised. Forward-looking statements are not guarantees of future performance. The Company, its affiliates, agents and advisers undertake no obligation and do not intend to update any forward-looking statements in this Document to reflect events or circumstances after the date of this Document.