Botala Energy (ASX:BTE) Lines Up A$1.35 Million Placement for Serowe Gas Flow Testing

Sonal Goyal

23 October 2026 07:34 PM AEDT

Botala Energy (ASX:BTE) Lines Up A$1.35 Million Placement for Serowe Gas Flow Testing

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Key Highlights

Firm commitments have been received to raise A$1.35 million before costs through a targeted placement at A$0.045 per new share.
About 30 million new shares will be issued, including about 7.2 million to the Board subject to shareholder approval.
Board and management are participating for A$0.4 million in the placement, with Board participation requiring shareholder approval.
Proceeds will fund Serowe-3.5B flow testing, maiden reserve certification, the Phase 2 Bankable Feasibility Study and working capital.

Botala Energy Ltd (ASX:BTE) said on 23 October 2026 that it has received firm commitments from sophisticated and professional investors for a targeted placement of new fully paid ordinary shares, raising A$1.35 million before costs at an issue price of A$0.045 per share. The company said the money will advance its Serowe coal bed methane (CBM) project in Botswana.

How the Placement Is Structured

Approximately 30 million new shares will be issued under the placement. About 22.8 million of them will be issued within the company's existing ASX Listing Rule 7.1 capacity, and that portion is expected to be issued on or around 2 November 2026.

A further 7.2 million shares or so will be issued on the same terms to members of the Board, subject to shareholder approval to be sought at a General Meeting. The company said board and management together are participating for A$0.4 million. The new shares will rank equally with existing shares.

Alongside the placement, Botala intends to run a share purchase plan that would let eligible shareholders acquire shares at the same price. The company said the record date and offer details will be announced to the ASX shortly.

Where the Funds Will Go

Botala listed five uses for the proceeds: continued flow testing of Serowe-3.5B; work toward a maiden reserve certification with Sproule ERCE; finalising the Phase 2 development Bankable Feasibility Study (BFS); finalising an investment from the Minerals Development Company of Botswana (MDCB); and general working capital and offer expenses.

The MDCB investment relates to a proposed project investment of about A$3.6 million, first referenced in an ASX announcement of 8 December 2025. Chief Executive Officer Kris Martinick said discussions with MDCB have been progressing, and that finalising the transaction remains subject to concluding commercial agreements.

Why This Could Matter

Mr Martinick said the funds will support the Pitse Pilot at Serowe, including the continued flow test of Serowe-3.5B. In his words, reaching the target commercial gas flow benchmark would further advance the project and directly support the reserves classification assessment and completion of the Phase 2 BFS.

Botala describes its strategy as establishing a scalable CBM-to-LNG production pathway to supply domestic and regional energy markets in Southern Africa. The company holds 100% of the Serowe project and says it has certified gas resources and granted development tenure.

Where Things Stand

The placement has firm commitments but the Board portion still depends on a shareholder vote, the MDCB investment depends on commercial agreements, and the share purchase plan terms are yet to be released.

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