Strata-X joins forces with leading Botswana fund in financing energy project

BOTSWANA – Strata-X Energy, an independent oil and gas exploration company owned by Serowe CBM has inked a non-disclosure agreement with the Botswana Development Corporation (BDC) to develop a multi-staged $10million financing strategy for the 100% Strata-X owned, Serowe CBM Project in the Republic of Botswana.

Strata-X and BDC are committed to bring the domestically sourced, Serowe CBM Project’s clean natural gas to help stimulate the Botswana economy.

The agreement will allow the BDC to review the Serowe project and business models, and will have between 60 to 90 days to conduct due diligence on the project, with the aim of providing a multi-stage finance package to develop Serowe.

The proposed funding will incorporate both equity and debt funding of up to $10-million over the next three years.

Strata-X executive chairperson, Ron Prefontaine, said “We are excited to be partnering with the BDC, the leading development fund in Botswana, as a potential significant cornerstone investor in our 100% owned Serowe coal bed methane project.”

The Serowe project has been estimated to contain up to six-trillion cubic feet of prospective resources, that extends over 1.1-million acres of the Botswana coal bed methane fairway. The natural gas from Serowe has the potential to change the makeup of the Botswana and Southern African region’s energy mix.

Strata-X is in the final stages of an environmental impact assessment, that will allow the company to drill an additional 75 wells above the 20 already approved over the internally-mapped high-grade area.

The estimated quantities of petroleum that may potentially be recovered by the application of a future development project(s) relate to undiscovered accumulations.

These estimates have both an associated risk of discovery and a risk of development. Further exploration appraisal and evaluation is required to determine the existence of a significant quantity of potentially moveable hydrocarbons.

BDC is the principal agency for commercial and industrial development within Botswana. It is a government sponsored agency administered by an independent board of directors, with the primary charter to advance the country’s economy through financial support of nationally important projects.

Strata-X is a Denver, Colorado (USA) based company and is engaged in the business of oil and gas exploration and development with a variety of exploration opportunities in the States of California and Illinois in the United States of America and the Republic of Botswana.

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