Event: Successful listing on the Botswana Stock Exchange (BSE) for Botswana Energy (BTE) yesterday.
Highlights;
Decent volume and strong buy-side interest post-listing indicate potential international interest noting that orders on BSE need to be executed on the ASX the next day and or increased local interest / awareness.
Importantly, BTE now meets the investment universe requirements in Botswana for their pension funds and institutions.
Note that the Botswana Public Officers Pension Fund own 4.5% of ASX and BSE listed Tlou (ASX:TOU) evidencing the legitimate interest in similar investments in the local Botswana insto market.
Technical and Valuation:
BTE vs. Tlou Energy (TOU): BTE arguably more valuable, trading at 6x less. Due to the following:
Technical edge: BTE's acreage covers all three seams, this makes recovery much more efficient and cost-effective compared to TOU's single-seam, which requires expensive horizontal wells.
Notably, Tlou's production from the deepest seam involves the expensive drilling of horizontal wells, costing substantially more and yielding lower sustained flow rates, such as 20mscfd. In contrast, BTE's SINGLE Serowe-3-1 well, drilled at a cost-effective $220k, produced an impressive 42mscfd. This is expected to increase from the 5 well pilot well currently being drilled; and
The Resource Base below.
Comparative Market Caps and Top 20:
Market cap comparisons showcase BTE's potential against peers: VS Energy ($5m), EXR ($95m), TOU ($30m), IVZ ($168m).
Supportive register with the top 20 owning 77.14% and the top 3 owning 53.49%.
Resource Base:
BTE boasts 317 bcf of 2C and 8tcf of 3C, surpassing many of the above competitors in potential scale.
As a side note, Botswana Presidential engagement pictured below emphasises high-level support for BTE's project, which is strong hint at insto support to now follow the BSE listing. Good luck to BTE team and its shareholders - exciting times ahead with the upcoming further wells, commercial pilot, solar and hydrogen projects and following yesterday's listing.
BTE Price at posting:
9.0¢ Sentiment: None Disclosure: Held
