Botala Energy has obtained a mining licence for its Serowe coal bed methane project, allowing for commercial production in Botswana. The licence grants production rights for ten years with a possible extension of 25 years. The Botswana Government has an option to acquire a 15% stake in the project, while Botala ramps up development activities, responding to the increasing energy demand in southern Africa.
Botala Energy, an Australian gas exploration and production company, has acquired a mining licence (ML0052/2025) for its Serowe coal bed methane (CBM) project in Botswana. This licence, which is granted under Section 39 of Botswana’s Mines and Minerals Act, enables regulatory approval essential for the project’s development and commercial production. The strategic acquisition comes after successfully completing environmental and planning assessments, fulfilling all key regulatory requirements.
The newly granted licence empowers Botala to produce CBM natural gas within the designated area for ten years, with the possibility of extending this period by an additional 25 years. The licensed area encompasses most of the regions previously held under Prospecting Licences PL356/2018 and PL400/2018. Furthermore, the Botswana Government has a 90-day window to decide on acquiring a 15% equity stake in the project, as detailed in Section 40 of the Mines and Minerals Act. If exercised, this option may yield Botala approximately A$2.2 million (approximately $1.3 million).
In compliance with the agreement, the Government of Botswana qualifies for a 3% royalty on the gross market value of the gas, calculated based on an arm’s length sale at the mine gate. Kris Martinick, CEO of Botala Energy, remarked, “The granting of the mining licence is a defining moment for Botala and a major de-risking milestone for the Serowe CBM Project. It removes the final regulatory hurdle and provides us with the green light to transition from exploration to development, bringing us closer to first revenue.”
With all necessary approvals secured, Botala Energy is enhancing its development activities, including drilling additional wells, improving infrastructure, and advancing its bankable feasibility study (BFS). The company’s progress aligns with the increasing demand for energy in southern Africa, indicating a significant opportunity for delivering essential natural gas to the region.
In summary, Botala Energy has successfully acquired a mining licence for its Serowe coal bed methane project in Botswana, positioning the company to transition from exploration to development. The government has the option to acquire an equity stake in the project, and Botala is poised to capitalize on the growing energy demand in the region. With all regulatory approvals in place, development activities will be intensified as the company aims to deliver natural gas to the market.
Original Source: www.offshore-technology.com
