Botala Energy reports increased downhole annulus pressure from Serowe-3 coal bed methane well

Increasing volumes of bubbling gas in the dewatering of Botala Energy’s (ASX: BTE) Serowe-3 well in Botswana have been accompanied by a substantial increase in downhole annulus pressure.

The company said it indicates that pressures within the coals are close to their desorption pressure point which may result in the release of higher gas flow.

Water levels will continue to be drawn down to measure further increases in gas pressure over the coming weeks.

Average water flow rates have stabilised at 85 barrels per day.

Investment decision

Botala chief executive officer Kris Martinick said the increased annulus pressure was “very encouraging”.

“This will allow us to make an investment decision to proceed with four additional appraisal wells under a commercial pilot program,” he said.

“We still have a large, underexplored area and our programs will allow us to confirm we are targeting the right coal seams in the region and increase our confidence in meeting our objective of developing a commercial gas field.”

Botala holds a 70% interest in the Serowe project which is located in a high-grade coal bed methane region of Botswana.

The remaining 30% is held by Pure Hydrogen Corporation (ASX: PH2) pursuant to a joint venture agreement with Botala.

Commercial pilot program

Botala said the recent doubling in annulus pressure was “sufficiently encouraging” to progress with the Serowe-3 commercial pilot program.

The program will see the company drill four appraisal wells around Serowe-3 to establish sustainable gas flow by dewatering the peripheral wells to allow the central well to produce coal bed methane gas.

Well designs, surface facilities and procurement are currently underway.

Ground surveys

Prior to finalising well location, Botala will conduct ground and audio magnetic surveys over the Serowe-3 area and at Serowe-7, located approximately 26 kilometres to the west.

The surveys will include two lines linking the Serowe-5 well to the commercial pilot program area to provide a greater understanding of the presence of dolerites within the coal sections.

The Serowe-3 well is open to the three coal seams of the region.

The pilot program aims to production test individual coal seams and establish optimum drilling techniques and completion methods.

Serowe-7 well

Botala has selected equipment vendor Akkurat to proceed with fabrication of the flow-testing unit for the Serowe-7 well at its Queensland facility.

The work is expected to be completed within two months, after which time the unit will be transferred to Botswana for installation.