Strata-X Goes for 100% of Botswana CBM

Strata-X, the Australia and Toronto-listed coalbed methane explorer in Botswana has pre-empted a third-party offer to buy out a 25% interest  in the Serowe CBM project from Sydney-based Raven Energy (formerly Magnum Power & Gas) for A$0.55mn (US$0.43mn). 

The move will grant Strata-X 100% control of the 273,000 acre Serowe project, which the company says has a prospective 1.4 trillion ft³ CBM resource, as it already holds a 75% interest. It expects full takeover to be executed by end 1Q2018. Strata-X meanwhile plans to initiate environmental surveys, with a view to moving forward with its 2018-19 drilling and testing programme thereafter.

In a January 3 statement, chairman Ron Prefontaine said: “By converting the significant gas resources in these tenements to reserves, and given the huge and diverse gas markets in Botswana and surrounding southern Africa, in my view, Strata-X has the potential to repeat the exponential growth of the early small cap Queensland [CBM] explorers.”

Strata-X will pay A$25,000 to Raven by end-February, then A$125,000 cash plus a 3.5% royalty in the 25% interest, and subsequently a further A$400,000 split into two equal payments.

Another Australia-listed firm Tlou Energy has a more advanced Botswana CBM project, having last year submitted a plan to run a power project on its booked CBM reserves. It hopes later to scale up the project with a view to exporting electricity to neighbouring South Africa.