Highlights

  • Gas has flowed continuously at the Pitse Pilot 3.5B well since 20 September 2026, rising from about 1.5 Mscf/d to about 28 Mscf/d, or roughly 30 GJ/day.
  • The water level has been lowered to about 10m above the Serowe coal seam, down from about 60m when sustained gas production began.
  • Water production fell about 25%, from around 320 to 240 barrels per day, over the same period that gas output increased.
  • Botala's appraisal benchmark remains a sustained gas flow rate of 70 GJ/day, with controlled dewatering and flow testing continuing.

Botala Energy Ltd (ASX:BTE) announced on 13 October 2026 that gas flow at its Pitse Pilot 3.5B well in Botswana has increased to approximately 28 thousand standard cubic feet per day (Mscf/d), or about 30 GJ/day, as dewatering of the reservoir brings the water level closer to the target coal seam.

The well, also referred to as Serowe-3.5B, forms part of the company's 100%-owned Serowe Coal Bed Methane (CBM) Project. Botala described the results as encouraging interim progress towards stabilised flow rates, while noting that sustained commercial rates have yet to be demonstrated.

Gas Output Rises as Water Production Falls

According to the company, gas has flowed continuously since 20 September 2026. Over that period, measured gas flow increased from about 1.5 Mscf/d (around 1.6 GJ/day) to about 28 Mscf/d, with brief readings above 30 Mscf/d. At the same time, water production fell from about 320 barrels per day to 240 barrels per day, a reduction of about 25%.

The water level has been drawn down from about 60m above the Serowe seam at the start of sustained gas production to about 10m above the 13m-thick seam. Botala explained that CBM production depends on lowering reservoir pressure enough to release gas held within the coal, and said the rising gas flow is consistent with the expected response to progressive depressurisation. The company added that further testing is needed to confirm sustained productivity.

Chief Executive Officer Kris Martinick said the key development is gas output rising while water output falls, and linked this response to the stimulation programme carried out in July, which enabled substantial water removal. He said the priority is to manage the well carefully, preserve long-term productivity and establish what it can reliably deliver, adding that confidence in the well's commercial potential is growing.

A Controlled, Staged Testing Approach

Botala said the water level is being lowered at about 2m per day, with surface gas flow settings adjusted progressively based on observed well performance. The staged approach is intended to limit operational risks, including the mobilisation of coal fines or sand, and to avoid excessive drawdown that could harm well productivity.

Disclosures under ASX Listing Rule 5.30 show the well is located in Mining Licence ML-52, previously Prospecting Licence PL-400, with a 100% working interest. It intersects 23m of coal, comprising 13m of the Serowe Seam at 377m depth and 10m of the Upper Morupule Seam at 397m. A 2-inch wellhead choke is in use, and on 6 October 2026 the choke was increased from 16/64 inch to 18/64 inch along with a separator throttle adjustment, which the company said resulted in an immediate increase in gas flow.

The well received a single stimulation over 1.5 hours, using 2,200 barrels of fluid and 43.5 tons of sand injected at 24 barrels per minute. Botala noted that the stimulation water was recovered with no visible proppant returns.

Benchmark, Priorities and Technical Qualifications

The company's appraisal benchmark remains a sustained gas flow rate of 70 GJ/day. Botala emphasised that the current figure of about 30 GJ/day is an interim field measurement under existing well settings and not a stabilised production rate.

Its stated immediate priorities are to continue lowering reservoir pressure through controlled dewatering, progressively adjust gas flow settings while monitoring reservoir response, establish reliable stabilised flow rates and confirm gas composition, and provide production and reservoir data to independent resource certifier Sproule for future resource and reserves assessments.

Botala noted that the GJ/day figures use an assumed energy content of 1.055 GJ per thousand standard cubic feet, pending gas composition and calorific value testing, so actual energy production may differ. The Pitse Pilot is intended to de-risk reservoir performance, support reserves determination and progress a Bankable Feasibility Study, as part of the company's stated strategy of a scalable CBM-to-LNG pathway for domestic and regional markets in Southern Africa. Botala is listed on the ASX and the Botswana Stock Exchange.

Key Takeaways

  • Gas flow at Pitse Pilot 3.5B rose from about 1.5 Mscf/d to about 28 Mscf/d (around 30 GJ/day) since 20 September 2026.
  • Water production declined about 25% to 240 barrels per day, and the water level is now about 10m above the Serowe seam.
  • Current rates are interim and not stabilised, with the appraisal benchmark set at 70 GJ/day.
  • Botala plans to supply production and reservoir data to Sproule for future resource and reserves assessments.