Botala Energy is seeking to raise up to A$1.5 million through a share purchase plan to finance further gas flow testing, production activities and exploration drilling at its Serowe Coal Bed Methane Project in Botswana.
The Australian Securities Exchange-listed company announced the fundraising on Monday, 9 November 2026, offering eligible shareholders new shares at A$0.045 each.
The offer follows a separate A$1.35 million share placement completed earlier this month, potentially bringing the company’s combined fundraising to A$2.85 million before costs if the new offer is fully subscribed.
Botala said proceeds from the share purchase plan would support continued flow testing and production activities at the Pitse Pilot Project, priority exploration drilling and general working capital.
The fundraising comes as Botala continues testing the Serowe-3.5B well, where continuous gas flow was established on 20 September 2026.
The company reported that gas production had increased from approximately 1,500 cubic feet per day to 28,000 cubic feet per day, equivalent to about 30 gigajoules daily.
Its pilot benchmark is 70 gigajoules per day, meaning further testing is required to demonstrate the flow rates needed to support the project’s development plans.
Under the share purchase plan, Botala proposes to issue up to 33.33 million new ordinary shares. Eligible shareholders may subscribe for between A$2,500 and A$30,000 worth of shares.
The offer is scheduled to open on 13 November and close on 27 November, with new shares expected to be issued on 4 December 2026.
Botala said the offer is not underwritten and has no minimum subscription requirement. The company may also scale back applications if demand exceeds the proposed allocation.
The Serowe project is central to Botala’s plans to establish a coal bed methane industry in Botswana and eventually supply liquefied natural gas to regional industrial customers.
The company reports independently certified contingent gas resources of 471 petajoules and prospective resources of approximately 7,542 petajoules across its Serowe interests.
Botala has also entered into a binding offtake letter of intent with South African steel producer Scaw Metals for up to 3.5 petajoules of liquefied natural gas annually, with an option to increase volumes to 4.7 petajoules as production expands.
The immediate priority remains establishing sustained gas production at the Pitse Pilot before proceeding with larger-scale development.
The company has not disclosed how much of the proposed A$1.5 million will be allocated separately to flow testing, drilling and working capital.
The final amount raised will depend on shareholder participation when the offer closes later this month.
