Botala Energy Limited is an Australian oil and gas company focused on exploration and development opportunities for natural gas in Botswana.

Company Overview

Botala aims to be a diversified energy company producing reliable and dispatchable energy from renewables, backed by gas (coal bed methane CBM) to:

  • meet Botswana’s domestic energy requirements
  • export energy to neighbouring countries
  • attract industries wanting reliable, renewable energy.

We expect industry to relocate to Botswana because, in addition to our reliable energy there is low sovereign risk, a favourable business environment and our strategic location near cross-continental highways with access to the markets of Southern Africa.

Our key focus will be the exploration and development of Botala’s Serowe CBM potential. During 2021 exploration resulted in an independently certified 2C contingent resource increasing from ~24 billion cubic feet (bcf) by 136 bcf to 160 bcf in our immediate area of interest. The prospective resource within our total tenement holding increased from 6.3 to 10.1 trillion cubic feet.

We are acquiring 1520ha to establish the Lupani Energy Hub and Industrial Park. The proposed Hub is 4.6 km from the Morupule coal fired power station with access to the domestic and Southern African Power Pool electricity distribution networks and close to the towns of Palapye and Serowe and associated highways. We are exploring and developing: the Serowe gas project; solar opportunities; decarbonisation; and carbon credit opportunities. Our activities comply with our environmental, social and governance (ESG) guidelines; and we have triggered environmental and social approval processes.

Botala proposes to achieve its objectives through partnerships with Botswana’s parastatals, the Batswana private sector and other interested parties.

Our energy hub and industrial park is expected to contribute to Botswana’s economy and support its Integrated Resource Plan objectives by:

  • Facilitating the transition from coal and diversifying sources of electricity generation.
  • Meeting Botswana’s shortfall in electricity supply and contributing to decarbonisation.
  • Creating a large Southern Africa energy/industrial hub suitable for manufacturing renewable energy and energy storage products, new-age materials, and products aligned with the resources sector.
  • Achieving net-zero emissions by latest 2040.

We are well placed to supply CBM to the nearby Orapa gas-fired power station currently operating intermittently on diesel.

Botala proposes to produce compressed and /or liquified natural gas (CNG and LNG) for use in stationary engines and vehicles (especially buses and trucks) as a supplementary or alternative fuel to diesel engines to achieve fuel efficiencies and cleaner emissions. Indications are that this of considerable interest to the mining industry, especially in nearby South Africa.

We are positioning ourselves to produce hydrogen for distribution along the heavy haulage transport routes of southern and central Africa that traverse Botswana near our proposed energy and industrial hub. We are looking to convert CBM to hydrogen and carbon black, including high-value synthetic graphite, graphene flakes and carbon nanotubes. This is likely to be done in joint venture with Pure Hydrogen Corporation Ltd (ASX: PH2), a company focused on becoming Australia’s leading hydrogen producer and distributor, a producer of high value carbon products, and a distributor of hydrogen fueled vehicles. Hydrogen production would be an entirely new high-tech industry in Botswana.

There are attractive commercial reasons to use CBM and atmospheric nitrogen to manufacture ammonia, urea and ultimately ammonium nitrate for use in fertilizer, explosives and as additive to diesel fuel. Botala has initiated discussions with a potential joint venture partner.

Botala’s development and growth should have many social, environmental, and economic benefits for a wide range of stakeholders, including shareholders, by:

  • Increasing Botswana’s electricity supply reliability.
  • Reducing the cost of domestic electricity.
  • Increasing the Botswana Power Corporation’s profits on the sale of electricity.
  • Reducing, and ultimately removing, Botswana’s need to buy imported electricity.
  • Generating revenue for Botswana from the export of electricity.
  • Creating carbon credits by renewables and gas replacing coal in electricity generation.
Farmin Agreement

Botala is the operator of the Serowe CBM Project. It has an agreement with PH2 to retain a 49% interest of this project by funding A$6.1million of exploration and development and to acquire a further 21% to bring its total interest to 70% by giving PH2 a 19.999% shareholding in Botala on listing on the ASX.

Background - energy

Botswana aims to reduce its dependence on diesel and expensive, imported, unreliable electricity and to transition to renewables. It plans to utilise its huge, undeveloped CBM reserves to become energy independent and create new industries.

Share Information

Botala has 79,637,247 shares, 6,000,000 Performance Rights and 18,757,000 Options on issue on 31 December 2021 and has raised a total of ~$3.3 million.

The directors and CEO collectively hold 61% of the Ordinary Shares of Botala.

Botala

There are four substantial shareholders, each holding more than 5% of the ordinary shares of the Company.