Botala Energy Ltd. announce that the Kalahari Gas Corporation (KGC) contracted drilling rig has successfully drilled the Serowe-6 well. The well reached a Target Depth (TD) of 540m and the well is currently being logged using Nuclear Magnetic Resonance (NMR) technology to determine adsorbed gas, free gas and indications of permeability of the targeted coal seams. Coals were encountered at 381m and extended to approximately 515m. Onsite logging is expected to be completed by 2 December 2022, with results and final report anticipated a week later.

The KGC rig has moved to the Serowe-7 well site and is expected to spud during the week starting 5 December 2022. The Serowe-7 well is located 2.5km South-East of the Serowe-1 well and aims to extend the high-graded area between the Serowe-3 location and Serowe-1. Flow-testing of the Serowe-3 well is progressing as planned, initial water flow results are above expectations with a stabilised water flow of 42 bbls/day in the Serowe Coal Seam (upper coal formation). Water flow-rate is an indication of permeability of the coals.

The 42km long Audio Magnetotelluric (AMT) geophysical survey has been completed and the contractor has de-mobilised. Further details in respect of Botala's drilling programme are set out in Sections 2.6 and 3.7 of the Prospectus. Additionally, the current water production rates from the Serowe-3 well are very encouraging.

These are early days, but the programme is progressing well. Final flow-data will be used to design the commercial pilot programme.