US-based oil and gas exploration company Strata-X Energy has secured an extension for its prospecting licences held in the Republic of Botswana, covering the Serowe coal seam gas project (CSG) project.
With the extension, the company will continue to hold rights over the licences until the end of 2025, paving the way for an active 2018 appraisal programme.
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According to the company, the extension was sought primarily to protect shareholder investment.
Located in the heart of the Kalahari Basin CSG Fairway, Serowe CSG project is a 273,000 acre prospective resource play, where the company intends to develop 1.4Tcf.
Strata-X Energy board chairman Ron Prefontaine said: “Our team has been working with the Botswana Government to develop a framework, including the extended tenure which allows for the planned successful development of the company’s Serowe CSG project.
“The new licence terms combined with the acquisition of a 100% working interest offers long tenure and full control of the project.
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By GlobalData“Importantly, the company is free from a restrictive farm-in arrangement while ensuring that its investment is protected with a much longer tenure.”
The company is proceeding with its efforts to seek the necessary environment approvals required to commence the appraisal programme.
It is expected that the environmental approvals will be granted in the third quarter of this year.
The proposed appraisal programme is aimed at converting resources to reserves.
Strata-X is also planning to secure sales agreements with potential industrial gas customers.
The new prospecting licences, known as PL018-2018 and 019-2018, are set to replace coal seam gas prospecting licences 352-353/2008.
The licences will initially carry a period of three years, with the option for two two-year extensions.
