- Company says funding demonstrates robust support from institutional investors and own board
- Has embarked on 5-Pilot Well programme hinged on Serowe 3 known as Project Pitse
GAZETTE REPORTER
Botala Energy has announced the successful completion of crucial funding initiatives in December 2023.
The company’s recently released 2023 interim report highlights milestones achieved through strategic investments, including institutional placements and commencement of a pioneering commercial pilot programme.
According to the report, Botala Energy secured essential funding through various channels, demonstrating robust support from both institutional investors and the company’s board.
Drilling and flow-testing
In September 2023, the company concluded an A$805,000 Institutional Placement, primarily aimed at advancing its drilling and flow-testing programmes. Notably, the company’s board exhibited confidence in its initiatives by participating in this placement with an investment totalling A$525,000 in November 2023.
Furthermore, Botala Energy successfully secured A$2.4 million through an oversubscribed placement in December 2023, marking a significant milestone in its financial endeavors.
This funding, with an issue price reflecting an 8.4 percent premium to the 10-day VWAP, is earmarked to bolster the completion of the commercial pilot programme and the planning of renewable energy projects, including the establishment of a Solar Panel Manufacturing Plant in Botswana.
Dual listing
Encouragingly, the company’s board further demonstrated its commitment by contributing A$775,000 to the second placement, pending shareholder approval.
In addition to its financial achievements, Botala Energy, which is an Australian company specialising in exploration and development of natural gas and renewable energy in Botswana, executed a strategic move by completing a dual listing on the Botswana Stock Exchange (BSE) in November 2023.
This listing, achieved through introduction to the BSE Foreign Main Board, underscores the company’s efforts to broaden its investor base and enhance liquidity.
Project Pitse
Botala Energy affirms its adherence to the ASX Listing Rules for all announcements on both the ASX and BSE, thereby ensuring transparency and consistency in its operations across exchanges.
On the operational front, Botala Energy embarked on its inaugural Commercial Pilot Programme, named Project Pitse, during the review period.
Project Pitse encompasses a 5-Pilot Well programme centred around the Serowe 3-1 well, known formally as Serowe-3.
The decision to proceed with drilling additional wells was informed by the accumulation of gas at Serowe 3-1, which was subsequently flared, indicating promising prospects for commercial production.
Expansive tenement area
Notably, the successful completion of three out of four planned pilot wells underscores Botala Energy’s operational efficiency and the high potential of the Serowe CBM gas project.
Highlighting the achievements of Project Pitse, Botala Energy notes significant coal intercepts in three wells, with Serowe 3-2, 3-3, and 3-5 intercepting substantial net coal sections across targeted seams.
These findings, coupled with promising initial flaring results from Serowe 3-1, affirm the company’s confidence in achieving the target commercial flow rate from the 5-well cluster.
Furthermore, logging results extend the area of targeted coals within Botala Energy’s expansive tenement area, further solidifying the project’s viability and potential for long-term success.