BotsGas Pty Ltd has agreed to farm into Strata-X’s (ASX: SXA) Serowe CBM Project in a high-grade CBM region of Botswana. All approvals have been secured for the 95+ well drilling program and BotsGas is approaching the drilling of its initial corehole (Strata-X as Project Managers). The Company aims to establish a contingent resource while jointly pursuing off-take agreements. BotsGas and SXA share the same vision of gas underpinning a transition to cleaner energy within Southern Africa.
Listing BotsGas on the ASX in 2021 will always be considered. The Company is in discussions with a potential gas buyer to secure a CBM off-take agreement (a CBM-to-power company), targeting Botswana’s domestic market hungry for reliable clean energy as well as market gas and power to neighbouring South Africa in the future.
Botswana at a Glance
- Population 3 million
- Politically and financially stable:
- GDP ~US$18 Billion
- Foreign Currency Reserves US$7.5 Billion
- GDP Growth (2018) 5%
- Supportive Foreign Investment culture:
- Fraser Inst 3 in Africa after Mauritius and Cape Verde
- Favourable credit ratings:
- Economic freedom score of 5 (2019)
- 36 in world, No 1 in Africa
Botswana ranked 1st by The Economist in 2020 in terms of financial strength compared with 66 other developing nations.
BotsGas is farming into Strata-X (SXA) because:
- SXA and BotsGas share the same vision of a stable green Energy Hub within Botswana
with the future potential to support wider regions
- SXA has a 6 Tcf (trillion cubic feet), Independently Certified Prospective Resource on its 100% owned Serowe CBM Project, with ~2.4 Tcf potentially located within a high grade area1
- SXA is targeting the Serowe coal seams, as the following properties result in best production rates, lower operational costs and less technical risk:
- Shallow (~250 to 500m depth; 12m coal over 50m gross interval)
- Gaseous Coal (80-100% Gas Saturations )
- CBM can be readily abstracted by a series of low-cost, vertical wells
- No horizontal drilling and fracking required
SXA is managed by Ron Prefontaine, a noted CBM specialist, who leads a team with proven CBM and significant value adding expertise.