Pure Hydrogen directors to take up shares in Botala Energy
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Pure Hydrogen directors have demonstrated their belief in the potential of ASX hopeful Botala Energy by committing to investing in its upcoming $7m IPO.
Chairman Ron Prefontaine, who was the former operations director of Bow and Arrow Energy that sold for a combined $4bn, will invest $100,000 in Botala while managing director Scott Brown will pick up $30,000 worth of shares priced at 20c each.
This is in addition to Pure Hydrogen’s (ASX:PH2) existing agreement that gives it a 19.99% stake plus options in Botala upon the latter’s admission into the ASX in exchange for an additional 21% working interest in the Serowe CBM project in Botswana.
Prefontaine expressed his belief that Botala will be successful in commercialising the multi-trillion cubic feet of certified gas resources within their Botswana tenements to the benefit of Botala and Pure Hydrogen shareholders.
“This is demonstrated by the positive results of the Botala drilling programs to date, that have so far certified 315PJ of 2C resource.
“I predict that the immediate post IPO pilot program will prove commercial gas flow rates which will allow conversion to 2P reserves and gas sales. The development of the gas reserves will offer cleaner energy independence for Botswana.
“Most importantly, the skilled Botala management team have demonstrated capable professional operations in Botswana which will be the key to achieve success.”
Brown added that Botala’s management was doing a good job of upgrading the resource contained within the Serowe project.
“This, together with the strong gas prices in Southern Africa mean the likelihood of commercialisation is very high,” he noted.
“The Hydrogen JV with Pure Hydrogen adds further upside in a region demanding more energy. There are likely to be many things providing good news flow post listing for Botala. “
Botala is seeking to raise between $5m and $7m through its IPO priced at 20c per share that is lead managed by GTT Ventures.
Pure Hydrogen shareholders will be given an exclusive priority offer to participate in Botala’s IPO as part of the deal, with 15 million shares on offer.
Proceeds will be used to fund a five-well pilot program to test the Serowe project’s flow-rate potential as well as early-stage research and development of related renewable energy opportunities.
Botala will hold a 70% stake in the project on listing.
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.