Strata-X Serowe CBM Project Acquires Environmental Approval

Approval granted for additional 75 wells over high-grade area highlights:

  • The Botswana Department of Environmental Affairs has approved the Environmental Impact Assessment (“EIA”) on the Serowe Project.
  • The approved EIA grants Strata-X the right to drill and test an additional 75 wells over the 2.38 Tcf Prospective Resource high-grade area. (1)
  • A multi-well appraisal drilling and production testing programme is planned for 2020 within the high-grade area.

The directors and management of Strata-X Energy Ltd. (TSXV: SXE) (ASX: SXA) (“Strata-X” or the “Company”) announced this week 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 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 (1,295KM2) 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 metres of net bright-coal seams over a 50-metre interval with high gas saturations up to 100% and 2.38 TCF prospective gas resource net to Strata-X. (1) 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 Bcf of natural gas. The 19B-1 well intersected 18 metres of net coal with 12 metres 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 4,784 KM2 (1,129,000 acres) over the Serowe CBM Project with a certified Prospective Resource of 6.05 TCF.(1)

Source: oilandgas360.com

2 weeks ago

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