Commercial Pilot Programme
Serowe #3 well, which was drilled in August 2021, will be under-reamed, completed and flow tested for the purpose of testing commercial flow-rate potential from the field. A completion design and costing has been approved for execution in Mid-April 2022. The data and results obtained from this testing will be employed in the planning of the final commercial testing later in 2022 phase.
The next appraisal phase is a five-well commercial pilot programme. The five well appraisal programme will confirm geologic and reservoir variability over a larger area. Four new wells will be drilled with a 500m spacing in a square pattern plus the existing Serowe #3 well.
All the wells will be logged to determine coal depths, thicknesses, correlations, and coal continuity. Gas content will be determined from NMR logging. Gas samples will be taken from produced gas in Serowe #3 for compositional testing. This process will be repeated for the pilot wells during production testing.
The proposed layout helps to define reservoir boundaries and pressure communications between wells. Pressure communication and radial extent can be determined from Interference tests performed at timed intervals during production. The results will be used to estimate optimal spacing and well density in a development scenario.
A further 5 exploration wells are intended to be drilled following ASX Admission to meet the objectives of:
- Increasing Botala’s certified gas reserve/resource base in Botswana.
- Exploring the Licences which have yet to be drilled.
- Expand the existing high potential areas.
- Determine the location for a future pilot programme.
- Satisfy licence commitments.
Downstream Development Concepts
While Botala’s main undertaking is CBM exploration and development, the Company is cognisant of the global transition to renewable energy and, accordingly, is actively undertaking early-stage research and development activities to assess the viability of developing the following additional projects as an adjunct to its main undertaking (which in any event are subject to and conditional upon the successful commercialisation of the Serowe CBM Project):
- (Serowe Energy Hub): proposal for an approximate 20MW solar/ gas hybrid electricity plant which is envisaged to be fed into a nearby substation in Serowe, Botswana; and
- (Lupani Energy and Industrial Park): proposal for:
- a 700MW solar/ gas hybrid electricity plant which is envisaged to be fed into domestic and SADC networks in Lupani, Botswana (Lupani Energy Hub); and
- a site powered by the Lupani Energy Hub which is envisaged to provide a space and services for local Botswana businesses to develop renewable energy projects (Lupani Industrial Park).
The Lupani Energy Hub and Lupani Industrial Hub are proposed to be located proximally to nearby infrastructure and, if constructed, are envisaged to provide a space and services to develop the Company’s renewable energy opportunities and would provide utilities such as power, gas and water as required with a view to attracting local Botswanan businesses with a focus on renewable energy.
Investors are cautioned not to make an investment decision in respect of the Company based on the proposals for the Serowe Energy Hub or Lupani Energy and Industrial Hub given they are not the Company’s main undertaking and are very early-stage in nature (such that minimal funds have been attributed to them sufficient only to undertake initial research and development rather than completing construction of these projects), are uncertain to proceed and are dependent upon various contingencies including the ability of the Company to secure site(s) and the success of the Serowe CBM Project. Further, the results and findings of the research and development work on the Serowe Energy Hub and Lupani Energy and Industrial Park may not warrant any further expenditure by the Company on Lupani Energy and Industrial Park. Additional details of the risks associated with the proposed Serowe Energy Hub and Lupani Energy and Industrial Park are set out in the company prospectus