45 GJ/day flow follows Botala’s first continuous gas at Serowe

Continuous Gas Flow Reached at Pitse Pilot

Botala Energy Ltd (ASX:BTE) has cleared an important technical hurdle at its Serowe coal bed methane project, with stimulated Pitse Pilot well 3.5B achieving its first continuous gas flow on 20 September. Gas began flowing while the water level remained approximately 60 metres above the Serowe coal seam, well above Botala’s pre-test expectation of about 20 metres.

“Stimulation units on site at Pitse Pilot well 3.5B, July 2026 (Source: Botala).”

The result builds on a strong dewatering response after July stimulation. Water production reached roughly 200 barrels per day in early August, around five times the initial rate recorded at well 3.1, while cumulative water recovery later exceeded the approximately 2,200 barrels injected during stimulation. Botala says dewatering was subsequently moderated to protect the stimulated coal and manage the well in a controlled manner.

Since the quarter ended, gas flow from 3.5B has been building above approximately 45 gigajoules a day under a 20% choke, while water production has fallen by about 25%. That remains preliminary testing data, however. The company’s stated benchmark is sustained production above 70 GJ/day, the level it says could support its current development concept. The earlier Serowe pilot flow test had established the operational lead-up to this milestone but had not yet demonstrated continuous commercial gas flow.

Support Wells Add Reservoir Data

Performance across the wider Pitse wellfield is still being assembled. Well 3.5A flared during a controlled blowdown and rebuilt pressure from zero to approximately 48 psi within three days, while well 3.3 is producing substantial gas from the Upper Morupule seam. Botala says that response points to a potential second productive horizon, although flow rates and commercial deliverability remain subject to ongoing measurement.

“Project Pitse”

“Botala Energy has a phased, risk managed approach to grow gas production at its Serowe CBM Project in Botswana to serve Southern Africa’s emerging industrial gas supply crisis…”

Caption and image © Botala Energy Ltd. From “Quarterly Activities/Appendix 5B Cash Flow Report”, 30 Oct 2026.

The company’s immediate technical work is to stabilise 3.5B, confirm gas composition and calorific value, and provide production and reservoir data to independent certifier Sproule. Those results are intended to support reserves certification, the Phase 2 Bankable Feasibility Study and the design of a proposed nine-well cluster targeting approximately 0.25 petajoules a year.

Serowe Acreage Reaches About 6,000 Square Kilometres

“Serowe CBM Project licences, including the three Prospecting Licences granted in September 2026.”

Botala also expanded its 100%-owned Serowe footprint by approximately 1,812 square kilometres through three new prospecting licences, taking total tenure to about 6,000 square kilometres. PL0089/2026 adjoins the Pitse area, and internal mapping indicates the Serowe seam may thicken northwards to approximately 14 to 16 metres. The company plans drilling in early 2027, subject to environmental approvals.

That acreage remains an exploration opportunity rather than an established resource. Botala has attributed no Contingent Resource, Prospective Resource or Petroleum Reserve estimate to the new licences, and says interpreted coal thickness does not establish gas content, permeability, deliverability or commerciality. The expansion follows the company’s 1,812km² licence expansion, now being folded into a broader development strategy around Serowe.

Funding Pressure Sits Behind the Technical Progress

The project’s engineering progress is paired with a much less comfortable balance-sheet position. Botala ended September with A$286,000 in cash after using A$1.23 million during the quarter, including A$806,000 on exploration and evaluation and A$424,000 in operating activities. Its Appendix 5B estimated only 0.3 quarters of funding at quarter end, assuming the reported spending rate continued.

After the quarter, Botala raised A$1.35 million through a targeted placement and announced a share purchase plan for November. Discussions with the Minerals Development Corporation of Botswana over a proposed equity investment remain subject to final commercial agreements. The company also divested its 49% interest in the Phuti solar project, with consideration described as not material, to concentrate on Serowe. The placement was reported separately as funding for Serowe flow testing, reserves certification, the Phase 2 feasibility study and working capital.

There was no commercial gas production in the September quarter: gas generated during 3.5B testing was flared. The next decisive evidence will therefore come not from the first flare, but from whether Botala can sustain output above 70 GJ/day, establish usable gas quality data and convert the pilot response into a reserves assessment and bankable development plan before funding becomes the binding constraint.