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Serowe CBM project in Botswana receives environmental approval

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Oilfield Technology,

The directors and management of Strata-X Energy Ltd. have announced that following on the field-work, community consultations, development planning and public commenting, the Botswana Department of Environmental Affairs has approved the Environmental Impact Assessment (EIA) on the company's Serowe coal bed methane (CBM) Project.

With the approval of the EIA, Strata-X has the clearance to drill and test up to 75 additional wells covering 3 prospecting licenses within the high-grade area of the Botswana CBM fairway. In total the company holds ~320 000 acres (1295 km2) within the identified high-grade area spanning five, 100% owned licenses. Previous environmental approvals acquired in 2018, covering two of the company's original Serowe CBM licenses, granted Strata-X the right to drill and test 20 wells. Through the EIA approval, Strata-X has the authorisation to drill and test up to 95 wells covering all of the 100% owned high-grade area before converting the area to full scale production licenses.

The high-grade area of the Botswana CBM Fairway is interpreted to contain, on average, 10 m of net bright-coal seams over a 50 m interval with high gas saturations up to 100% and 2.38 trillion ft3 prospective gas resource net to Strata-X. This interpretation is re-enforced with the results of the company's 19B-1 well and historic core hole data, where these wells bubbled free gas from the targeted bright-coals. The area immediately surrounding Strata-X’s recently drilled and logged 19B-1 well was certified to contain 2C Contingent Resources of 23 billon ft3 of natural gas. The 19B-1 well intersected 18 m of net coal with 12 m of multi seam bright coals having up to 100% gas saturations.

The company's focus on the high-grade area will be a major growth driver. A multi-well appraisal drilling and production testing programme within the high-grade area that steps out from the 19B-1 well is planned for 2020. The proposed programme, utilising best practices learned from the work to date, is designed to upgrade prospective resources to contingent resources with subsequent upgrades of contingent resources to reserves contingent on proving commercial gas flow rates. The multi-well appraisal programme will include the production testing of wells to acquire fluid flow rate data as required to design a multi-well CSG production pilot programme to prove commercial gas flow rates.

The company holds 4784 km2 (1 129 000 acres) over the Serowe CBM Project with a certified Prospective Resource of 6.05 trillion ft3.

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