Botala Energy has secured a mining licence for its Serowe CBM project in Botswana, granting rights to produce natural gas for ten years, potentially renewable for 25. Following comprehensive regulatory approvals, the license enables development, with an opportunity for the Botswana Government to acquire a 15% equity stake. This advancement positions Botala to respond to increasing energy demands in southern Africa.
Botala Energy, an Australian gas exploration firm, has obtained mining licence ML0052/2025 for its Serowe coal bed methane (CBM) project in Botswana. This licence enables the company to pursue project development and commercial production under the Mines and Minerals Act of Botswana. Granting this licence occurred after completing necessary environmental and planning approvals alongside feasibility assessments, ensuring regulatory compliance.
The newly acquired licence allows Botala Energy to produce CBM natural gas for a decade, with an option for a 25-year renewal. The licensed area includes portions of the territory once designated under Prospecting Licences PL356/2018 and PL400/2018. Furthermore, the Botswana Government now has 90 days to exercise its option to acquire a 15% equity stake in this project, which could result in an estimated A$2.2 million ($1.3 million) for Botala.
In accordance with the regulations, the government will also receive a 3% royalty based on the gross market value of gas at the mine gate. Botala Energy’s CEO, Kris Martinick, emphasized the significance of this licence, stating it is a key milestone that paves the way for transitioning from exploration to development and nearing first revenue generation.
With secured environmental and planning approvals, Botala is advancing fieldwork and moving ahead with a bankable feasibility study (BFS). The company intends to increase development activities, including drilling additional wells and enhancing infrastructure, thereby seizing the opportunity to provide essential natural gas amid rising energy demand in southern Africa.
In summary, Botala Energy’s recent acquisition of the mining licence for the Serowe CBM project is a pivotal development, allowing the company to proceed towards commercial production. With regulatory approvals in place and further development activities underway, Botala is positioned to meet the surging energy needs in southern Africa, marking a significant step forward for both the company and the region.
Original Source: www.offshore-technology.com
