Botala Energy Ltd (ASX:BTE) announced on 25 September 2026 that Pitse Pilot well 3.5B at the Serowe Coal Bed Methane (CBM) Project in Botswana has achieved its first continuous gas flare, with the well flowing for more than four days with a steadily increasing flow rate. The critical early indicator in the update is that gas flow commenced when the water level was still approximately 60 metres above the coal seam — well ahead of the anticipated approximately 20-metre threshold before gas flow would begin. CEO Kris Martinick described the early gas response as telling the team that the well is performing better than planned and that the stimulation opened up far more of the Serowe coal seam than initially expected.

First Continuous Gas Flare

Over 20 and 21 September 2026, well 3.5B achieved its first continuous gas flare, sustaining gas flow for more than 30 hours and has continued producing since. This was a step change from the shorter periods of gas flow observed previously. Gas flow commenced with the water level still approximately 60 metres above the coal seam, compared to the anticipated approximately 20-metre threshold. The flow rate is steadily increasing. Dewatering has been deliberately slowed to a controlled rate of 3 to 5 metres per day to protect the stimulated coal as the well is carefully brought on.

Stimulation Program Indicators

Water volumes from well 3.5B have been well above those of surrounding unstimulated wells, consistent with the stimulation program having materially improved connectivity within the coal seam. The combination of early gas flow and elevated water volumes is described as an encouraging early indication that the stimulation opened up substantially more of the coal seam than the pre-stimulation model predicted.

Path to Commercial Production

The next key objective is to monitor gas production as it continues to increase against Botala's targeted commercial production benchmark of more than 70 gigajoules per day. Demonstrating commercial flow rates is described as the critical step toward developing the broader Serowe CBM Project, which is estimated to host a prospective resource of 7.1 Trillion cubic feet (Tcf). Management emphasised the importance of bringing the well on carefully and establishing what it can deliver on a stable and sustainable basis before drawing broader conclusions.

About the Company

Botala Energy Ltd is an ASX and BSE dual-listed energy company developing the Serowe Coal Bed Methane Project in Botswana. The Pitse Pilot is the key early-stage test well for the Serowe CBM system. The broader Serowe project is estimated to host a 7.1 Tcf prospective resource, making it potentially one of Africa's largest undeveloped gas resources if commercial flow rates are established.

Risks

Gas flow is in an early, increasing phase and has not yet been tested against the 70 GJ/day commercial benchmark. Early results may not translate into sustained commercial production.

The stimulation improved coal seam connectivity, but the gas rate response over time as dewatering continues is not fully predictable.

The 7.1 Tcf prospective resource for the broader Serowe CBM Project is unrisked and has not been independently assessed as reserves or contingent resources.

CBM development in Botswana involves regulatory, infrastructure, and offtake considerations that are at an early stage.

The deliberate slowing of dewatering, while protecting the coal seam, extends the timeline to test and demonstrate commercial flow rates.

What to Watch Ahead

Gas flow rate data as dewatering continues — specifically whether the rate trends toward and exceeds the 70 GJ/day commercial benchmark.

Water production volumes and the rate of water level decline, which govern how quickly the coal seam will be fully dewatered and gas rates will increase.

Any announcement of a stable and sustained commercial flow rate from well 3.5B — the transformational milestone for the Serowe CBM Project.

Plans for additional wells or pilot expansion contingent on 3.5B's commercial performance.

Offtake or gas sales discussions for potential Serowe CBM production, expected to follow once commercial flow rates are demonstrated.