Strata-X Energy Ltd. has announced that the company’s Prospecting Licenses held in the Republic of Botswana, covering the Serowe CSG Project, have been re-issued until the end of 2025 opening the door to an active 2018 appraisal programme. The previous remaining term of the inherited prospecting licenses to the end of 2018 was insufficient and the company sought and has been granted the reissuance primarily to protect shareholder investment.
With the goal to develop the 1.4 Tcf Prospective Resource over 273 000 acres, the company is moving forward with a Botswana environmental firm to seek the necessary environment approvals required before the appraisal programme can begin. The environmental approvals are expected in the third quarter of 2018.
The proposed appraisal programme is designed to prove commercial completion methods and convert resources to reserves. To achieve this, the company plans to apply the latest completion and production methods to yield commercial gas flow rates from the 100% SXA owned 1.4 Tcf CSG Prospective Resource deposit. Once that is achieved, the company can rapidly convert resources into reserves.
Concurrently, SXA will be seeking conditional gas sales agreements with the various potential generation and industrial gas customers that are currently using more expensive fuels like diesel.
Ron Prefontaine, Chairman of the Board, stated: “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 license terms combined with the acquisition of a 100% working interest offers long tenure and full control of the project. Importantly, the company is free from a restrictive farm-in arrangement while ensuring that its investment is protected with a much longer tenure. I am very pleased with our progress and believe this project will be a major growth driver for the company over the next 12 months and beyond.”
