Oz Strata-X Revises Botswana CBM Project Farm-Out HoA
Sydney-listed Strata-X Energy has revised the heads of agreement (HoA) it signed with fellow Australian explorer BotsGas to farm-out stake in the Serowe coalbed methane (CBM) project in Botswana, it said April 27 in a statement.
“As a result of global travel restrictions due to the Covid-19 crisis, Strata-X and Botsgas have reviewed the exploration programme and timing contemplated under that heads of agreement and have reached agreement to revise the structure of Botsgas's participation in the project,” it said.
Strata-X and Botsgas had signed the previous HoA in March this year. They have now agreed to replace the structure as outlined in the previous announcement with a new structure for proceeding to a joint venture to develop the project.
The revised HoA, requires Botsgas to pay Strata-X A$300,000 by June 30, 2020 as joint venture payment. It also provides for Strata-X and Botsgas to enter into a definitive joint operating agreement on or before November 30, 2020 pursuant to which Botsgas is required to sole fund US$4.6mn of joint venture expenditure within two years of the joint venture payment. The revised HoA requires Strata-X to transfer a 49% interest in its tenements in Botswana to Botsgas upon entry into the definitive joint operating agreement.
In conjunction with the revised HoA, Botsgas has also agreed to make a A$300,000 investment in Strata-X through a private placement.
The main focus of the farm-out will be the high-grade area of the Botswana CBM fairway, which is interpreted to contain 2.38 trillion ft3 prospective gas resource net to Strata-X. In January this year, Botswana’s department of environmental affairs approved the environmental impact assessment on the Serowe CBM project.