The Serowe coal bed methane (CBM) project is a coal seam gas reservoir located in the Kalahari Basin in Botswana.
Strata-X Energy owns the Serowe CBM project through its Botswanian subsidiaries, Sharpay Enterprises and Jab Right.Magnum Power and Gas previously owned 25% interest in the Serowe project, which was acquired by Strata-X in February 2018,gaining 100% control over the project.
Strata-X submitted final environment impact assessment (EIA) report seeking approval for drilling additional wells in the area, which is expected to be reviewed in September 2019. The final EIA is expected to be approved in December 2019.
The company will drill and test the high-grade resource area of the Serowe project, following approval of the final EIA.
Serowe coal bed methane project location and reserves
The Serowe CBM project comprises three prospecting licenses namely PL356/2018, PL016/2018, and PL400/2018 (A, B, and C)that cover a total area of approximately 475,000ha in Botswana CBM fairway.
The site lies near the villages of Malatswae, Thabala, and Mogorosi in the Central District of Botswana. The property can be accessed through bisecting tracks and veterinary fences from the Serowe-Orapa Highway (A14).
The Serowe project is estimated to hold 6.08 trillion cubic feet of prospective gas resource,according to the MHA Petroleum Consultants report released in May 2019.
Exploration and appraisal on Serowe CBM project
An engineering management plan (EMP) for drilling up to 20 wells in the concessions was approved in November 2018.Appraisal activities were commenced at the Serowe field in February 2019 with the drilling of two wells.
The first appraisal well called 19B-1 was drilled approximately 2.5km from a fully-cored test well named ML-1. The test well was drilled by the Government of Botswana in 2003. It was found to intersect gassy coals with gas saturations up to 100% from net coals ranging between 10m and 18m in thickness.
The 19B-1 coal seam well reached a total vertical depth of 474m targeting the coal bed. It intersected several coal seams with gas flowing to the surface.The data acquired from the well reported an increase of 83% in resources, compared to the previous estimates. The field is estimated to hold a maiden 2C contingent natural gas resource of 23 billion cubic feet.
A four-well appraisal drilling and production testing programme within the high-grade area is to be undertaken. The scope of the latest exploration involves the drilling of 75 additional exploration wells each with a dimension of 120m×120m covering an area of 1.2ha. Primary exploration will continue over the Serowe CBM high-grade area until 2025.
Financing for Serowe coal bed methane project
Strata-X raised approximately £740m (A$1.35bn)in financing by September 2018 for the development of the project through the private placement of chess depository units (CDIs).
It used approximately £233m (A$425m) of the proceeds for acquiring Raven Energy’s (formerly, Magnum Power and Gas) stake in the Serowe project besides funding the initial appraisal programme.
EcoSurv Environmental Consultants, a local consulting firm,received the contract for preparing the EMP and EIA for the project in March 2018.
Danos Drilling received the turnkey drilling contract for developing a firm and an optional appraisal well for the Serowe project in January 2019.
MHA Petroleum Consultants, an independent qualified reserve and resource certifier, was appointed by Strata-X to prepare the total prospective resource statement for the Serowe CBM project in May 2019.