Botala Energy Ltd (ASX:BTE), an Australian-listed Coal Bed Methane (CBM) company focused on the 100%-owned Serowe CBM Project in Botswana, announced on 25 September 2026 an important production milestone — Pitse Pilot well 3.5B has achieved its first continuous gas flare, flowing for more than four days with flow rates steadily increasing.

Recent Development

On 25 September 2026, Botala Energy announced that well 3.5B at its Pitse Pilot program achieved its first continuous gas flare over 20 and 21 September 2026, sustaining gas flow for more than 30 hours and continuing to produce since. The milestone came significantly earlier in the dewatering cycle than anticipated — gas flow commenced with the water level approximately 60 metres above the coal seam, compared to the pre-test expectation of approximately 20 metres above the coal. Management noted this early response, combined with substantially higher water production volumes relative to unstimulated surrounding wells, indicates the stimulation program has materially improved connectivity within the Serowe coal seam. To protect the integrity of the stimulated coal reservoir, Botala has deliberately slowed dewatering to approximately 3 to 5 metres per day — a controlled approach to minimise the risk of drawing sand and other material from the stimulated pathways into the well. The company's targeted commercial production benchmark is more than 70 gigajoules per day from the well. The coal seam at Serowe is 23 metres thick (13m Serowe Seam, 10m Upper Morupule Seam), and the broader Serowe CBM Project is estimated to host a prospective resource of 7.1 Tcf.

Share Performance

BTE shares closed at AUD 0.079 on 25 September 2026, down 1.25% (-AUD 0.001) on the day. The modest pullback may reflect profit-taking following earlier price appreciation or market patience pending confirmation of sustainable commercial flow rates.

About the Company

Botala Energy Ltd is focused on developing the Serowe Coal Bed Methane Project in Botswana, targeting domestic and regional energy markets of Southern Africa. The company's strategy is to establish a scalable CBM-to-LNG production pathway. Botala is listed on both the ASX and the Botswana Stock Exchange.

Risks and Uncertainties

While the early gas flow is encouraging, further dewatering and production testing are required before the well's sustainable gas rate can be determined. Achieving the 70 GJ per day commercial benchmark remains subject to reservoir performance. Controlled dewatering also means a longer pathway to establishing a stable commercial flow rate. The Serowe CBM project is in Botswana, introducing country risk, regulatory dependencies and infrastructure development requirements.

Catalysts to Watch

The critical upcoming catalyst is whether well 3.5B can achieve and sustain production rates above 70 gigajoules per day as dewatering continues. Management has committed to providing updates as meaningful production milestones are achieved. A successful bankable feasibility study for future commercial development would be the next major milestone for the broader Serowe project.

Final Word

The earlier-than-expected gas flow at Pitse Pilot well 3.5B is a genuine operational highlight for Botala Energy, suggesting the stimulation program has been more effective than planned. The gap between first gas flow and confirmed commercial production remains, and patient investors should track the progression toward the 70 GJ per day target as the defining milestone for this project.