Pure Hydrogen all smiles as Botala Energy’s IPO raises $5m
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Pure Hydrogen investee Botala Energy has successfully raised $5m in its initial public offering to fund a five-well program to test the Serowe CBM project’s ability to flow gas.
Pure Hydrogen – which will hold a 19.99% stake in Botala as part of a sale and purchase agreement – notes that many of its shareholders had participated in the IPO due to the quality of the Serowe project, and their interest in companies with exposure to the gas thematic.
Pure Hydrogen (ASX:PH2) managing director Scott Brown says the successful completion of the Botala IPO was a great result given the challenging market.
“We are excited about the opportunities for collaboration between Pure Hydrogen and Botala and we plan to build out a portfolio of projects in Southern Africa with a focus on CBM, Hydrogen and other clean energy opportunities,” he adds.
“Given the success of this IPO and the current high prices for natural gas in Australia, Pure Hydrogen is reviewing its gas portfolio and assessing the best way to unlock the value of these assets for shareholders.
“With highly prospective acreage in the Cooper Basin and a prime CSG project in Queensland, there is no better time than now to realise this value and we will advise shareholders on the best course of action in the very near term.”
Botala’s current focus is on developing the Serowe CBM project, which it now holds a 70% interest in, following the sale and purchase agreement with Pure Hydrogen.
The upcoming five well pilot project is designed to demonstrate commercial gas flow at the Serowe project and is expected to be followed by an appraisal program to convert gas resources into reserves, which is the amount of gas that can be produced economically.
Funds from the IPO will also be used to carry out early-stage research and development of related renewable energy opportunities.
This article was developed in collaboration with Pure Hydrogen, 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.