Strata-X Seeks Funds for Botswana CBM Project
Strata-X Energy has signed a non-disclosure agreement with the Botswana Development Corporation (BDC) to develop a multi-staged $10mn financing strategy for its fully owned, Serowe CBM project in Botswana, it said September 16.
“The proposed funding will incorporate both equity and debt funding of up to $10mn over the next three years. Such funding would not preclude the company from accessing other sources of capital,” it said.
BDC is the principal agency for commercial and industrial development within Botswana. It is a government-sponsored agency administered by an independent board of directors, with the primary charter to advance the country’s economy through the financial support of various projects.
Strata-X’s Serowe project is located in the heart of the Botswana CBM fairway and has an estimated 6 trillion ft3 of prospective gas resource, the company said. The Canada and Australia-listed company is in the final stages of an environmental impact assessment which will allow Strata-X to drill an additional 75 wells above the 20 wells currently approved.
The agreement was executed to allow BDC to review in detail the Serowe CBM Project and business models including proprietary data, the company said. BDC is under no firm obligation to provide funding to the Strata-X but has agreed that, pending expected successful due diligence, it anticipates entering a long-term, multi-stage finance package with Strata-X. The due diligence is expected to take between 60 and 90 days and any proposal that results from the due diligence will require approval by both the BDC and the Strata-X board of directors, the company said.