Botala Energy wheels in $2.4m via oversubscribed placement to complete pilot program at Project Pitse

Botala Energy raises $2.4m via an oversubscribed placement
BTE’s board also participated for $775,000, subject to approval
Funds will be spent towards the development of commercial gas flows

Special Report: An oversubscribed placement has tipped $2.4m into Botala’s coffers from new and existing sophisticated and professional investors to complete its commercial pilot program at project Pitse.

Botala Energy’s (ASX:BTE) Project Pitse is the company’s first commercial pilot project within the Serowe coal bed methane gas project in Botswana.

It comprises an independently certified 2C resource of 317 billion cubic feet (Bcf) based off five historical exploration wells that all intersected 24-40m of net coal, including the prospecting Serowe and Upper Morupule formations at a relatively low $220,000 average cost per well.

BTE says this is enough to fuel Botswana’s nearby Orapa gas power station for the next 20 years.

Strong support from new and existing investors

The company has now raised $2.4m at an issue price of $0.09/sh, a premium of 8.4% to the 10-trading day volume weighted average price (VWAP).

With a free attaching 1-for-1 unlisted option exercisable at $0.15/sh, expiring 31 December 2025, BTE says the funds will be used to support the completion of a commercial pilot program at Project Pitse, as well as the development of commercial gas flows.

So far, the program consists of five drilled wells and is targeting gas production mainly from the promising Serowe and Upper Morupule coal seams.

Money will also be spent towards research and development of renewables projects including a solar panel manufacturing plant in Botswana.

Well positioned for growth

“Botala is very pleased with the support shown by our existing investors and new investors for our projects as evidenced by the strong demand for the placement,” BTE CEO Kris Martinick says.

“The funds secured positions the company strongly to complete our commercial pilot program and target commercial gas flows from Project Pitse.”

This article was developed in collaboration with Botala Energy, a Stockhead advertiser at the time of publishing.

This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.