Highlights:

  • Botala Energy (ASX:BTE) shares were trading at AUD 0.053, trading flat during the afternoon Trading session on 20 August 2026.
  • Gas has been observed at Serowe-3.5B while water levels remain above the target coal seam ahead of a planned 3.5B flow test.
  • Serowe-3.5B is approaching a dewatering milestone, with fluid level approximately 80 metres above the coal.
  • The Serowe Project contains independently certified 454 Bcf of 2C Contingent Resources and approximately 7.1 Tcf of 3C Contingent Resources.
  • Support well Serowe-3.3 is producing substantial gas from the Upper Morupule seam, adding another gas-bearing coal horizon to testing activities.

Botala Energy Ltd (ASX:BTE) has reported further progress from its Pitse Pilot at the 100%-owned Serowe Coal Bed Methane (CBM) Project in Botswana, with gas observations recorded at the Serowe-3.5B production-test well ahead of a planned flow test.

Botala Energy shares were trading at AUD 0.053 during the afternoon trading session on 20 August 2026. Over the past year, the company’s shares remain down 24.29%. The latest update focused on ongoing dewatering activities, well pressure responses, and testing progress across the Serowe project.

The Serowe CBM Project is designed to provide production data required to support future commercial development, reserves certification, and completion of a Bankable Feasibility Study.

Gas Observed at Serowe-3.5B During Dewatering Program

Botala reported that gas is already being observed at Serowe-3.5B while the water level remains above the target coal seam.

The company said this indicates that parts of the reservoir are beginning to desorb gas as bottom-hole pressure declines during the dewatering process.

Serowe-3.5B remains the principal production-test well for the Pitse Pilot and is approaching a key dewatering milestone. The current fluid level is approximately 80 metres above the coal seam, while water production is approximately 12.2 barrels per hour, equivalent to around 293 barrels per day.

Casing pressure is approximately 42 psi and continues to rebuild following controlled bleed-off periods, which Botala said is an indicator of the well’s ability to recharge the gas phase.

The company noted that commercial gas deliverability remains subject to ongoing dewatering and production testing.

Serowe Resource Base and Pilot Development Pathway

Botala’s Serowe Project currently contains independently certified 454 Bcf (approximately 471 PJ) of 2C Contingent Resources and approximately 7.1 Tcf (approximately 7,542 PJ) of 3C Contingent Resources.

These resources have been defined from less than 5% of Botala’s approximately 4,200 square kilometre exploration acreage.

Project Pitse represents the first commercial production test within the Serowe CBM Project. The pilot is designed to provide production evidence required to advance the project towards commercial development.

Botala said successful commercial gas flow from Serowe-3.5B would provide production data supporting reserves certification, refinement of the Bankable Feasibility Study, commercial wellfield design, project financing discussions, and gas sales discussions.

Support Wells Provide Additional Testing Data

Botala also provided updates on support wells within the Pitse Pilot.

At Serowe-3.5A, the well was successfully flared for approximately 30 minutes during a controlled blowdown to relieve system pressure and enable a separator changeover.

Following the blowdown, casing pressure rebuilt from 0 psi to approximately 48 psi within three days. As at 17 August 2026, the fluid level was approximately 10 metres above the Serowe coal seam.

Serowe-3.3 is testing the Upper Morupule seam, which sits below the primary Serowe coal target. The company reported that the well is producing substantial gas, demonstrating gas response from another coal horizon within the Pitse stratigraphy.

Botala said that if sustained through further testing, the Upper Morupule seam could provide an additional producing interval and increase flexibility in future wellfield design.

Serowe-3.4A continues stable dewatering as part of the broader pilot program.

Progress Towards Future Commercial Development

Botala’s broader development strategy targets LNG production of approximately 3.5 petajoules per year, equivalent to around 200 tonnes per day of LNG, from an eventual wellfield of approximately 108 wells.

The company said current test results are building production and reservoir data but do not yet establish commercial recovery of the broader 2C or 3C Contingent Resource estimates.

All environmental approvals are in place across the Serowe gasfield, LNG production facilities, energy hubs, and pipeline corridor.

Chief Executive Officer Kris Martinick said the company was approaching an important stage in the Pitse program, with gas observations at Serowe-3.5B occurring before full drawdown had been achieved.

He said the next critical step was establishing sustainable commercial gas flow from Serowe-3.5B to support future development decisions.

Investor Takeaway

Botala Energy’s latest update highlights continued progress at the Serowe CBM Project, with gas observations recorded at Serowe-3.5B and additional testing information emerging from support wells. The company is continuing dewatering and production testing activities to assess reservoir performance.

Investors may continue to monitor Serowe-3.5B flow testing results, commercial gas deliverability, reserves certification activities, and progress towards the Bankable Feasibility Study and potential staged development.