Botala Raises A$1.87M and Secures Environmental Approval for Serowe Gas Project

Environmental Approval Clears Major Regulatory Hurdle

In a significant milestone for Botala Energy Ltd, the company announced it has received Environmental Impact Approval for its flagship Serowe Coal Bed Methane (CBM) Project in Botswana. This approval, granted in October 2024, removes a critical regulatory barrier and enables Botala to proceed with the development of the Serowe gasfield, LNG production facilities, energy hubs, and associated pipeline infrastructure.

The comprehensive environmental clearance underscores Botala's commitment to sustainable and responsible energy development. It also aligns with the company's strategic vision to become a key supplier of natural gas in Southern Africa, a region facing growing energy demand and supply constraints, particularly in South Africa.

Capital Raise Strengthens Financial Position

Complementing the regulatory progress, Botala successfully completed a capital raising of A$1.87 million in October 2024. The placement attracted strong support from both existing shareholders and new investors, reflecting confidence in the company's growth prospects and the potential of the Serowe CBM Project.

These funds are earmarked to advance exploration and development activities, including critical well drilling and commissioning operations planned for 2025. Botala ended the December quarter with a net cash position of approximately A$1.4 million, providing a solid financial foundation to pursue its operational objectives.

Shareholder Endorsement and Corporate Governance

At its Annual General Meeting held in November 2024, Botala secured strong shareholder backing, with all resolutions passed by poll. Key approvals included the re-election of directors, endorsement of the remuneration report, and ratification of prior share placements. This robust support signals investor confidence in the company’s leadership and strategic direction as it navigates the path toward commercial gas production.

Operational Focus and Project Development

Operationally, Botala is preparing to undertake a series of well workovers and drilling activities to optimise gas production. The immediate focus includes workover of the Serowe-3.1 well, involving sensor replacement and acid washing, followed by drilling and stimulation of additional wells (Serowe-3.4A, 3.4B, and 3.5B). These steps are critical to enhancing gas flow rates and ensuring timely commissioning of the project’s infrastructure.

Meanwhile, the company’s Mining Licence application is progressing through government channels, a necessary step toward full-scale development.

Strategic Outlook and Regional Energy Role

Looking ahead, Botala’s CEO Kris Martinick emphasised the company’s ambition to not only develop the Serowe CBM Project but also to explore hybrid renewable energy solutions. This dual focus aims to deliver reliable and sustainable energy to Botswana and the wider Southern African region, addressing critical power shortages and supporting economic growth.

Botala is actively engaged in advanced negotiations with potential development partners, although no binding agreements have yet been finalised. The company’s ability to secure strategic partnerships will be pivotal in scaling operations and realising the full commercial potential of its assets.