Exploration and Appraisal Programme
The objective of an appraisal programme is to understand the geology and deliverability of a field and cost-effective methods to unlock the gas resource. Exploration and appraisal data provide a knowledge of the geological extent, continuity, degree of heterogeneity, gas content/saturations, depths and thicknesses, volumes in place and flow dynamics. The quantity and quality of this data are key in assessing the commerciality of the field.
To date Botala has drilled 4 wells in addition to the previously drilled 19-B1 well by Strata-X (now Pure Hydrogen) over 2 drilling campaigns. The current resources estimate for Botala’s Botswana CBM Project effective 1st April 2022 is provided below in Table 1:
Table 1. Contingent (2C) and Prospective Resources; Sproule 1 April 2022
The contingent resources stated are prevented from being reserves until sufficient production tests are carried out. The total costs associated with establishing the commerciality of this project are unknown at this time given the early stage of the Serowe CBM Project’s development.
The Independent Technical Expert has provided a best estimate relating to the Serowe CBM Project of contingent CBM resources of approximately 317 (bcf) and prospective CBM resources of approximately 8,008 (bcf). This has seen a growth in gross 2C from the initial 23.8bcf to 317bcf.