Botala Energy (ASX: BTE, BSE: BOTALA) has reported a wider annual loss as it advances efforts to monetise coal bed methane (CBM) reserves in Botswana. The Australian junior posted a net after-tax loss of AUD 2.91mn (about $1.9mn) for the year to June 30, compared with AUD 2.07mn in the prior period, according to its annual report.

“Over the last 12 months, Botala has achieved a series of important milestones that continue our transition from an exploration-focused business to a developer and producer of liquefied natural gas (LNG) through commercialisation of our Serowe CBM gas project in Botswana,”  commented executive chairman Wolf Martinick.

Botala raised AUD 1.87mn ($1.2mn) in October 2024 and AUD 1.25mn ($820K) in April 2025 through equity placements, funding drilling, well development and feasibility work. It secured mining licence ML0052/2025 for its flagship Serowe project, granting rights to produce and sell gas over an initial 10-year term. The company also acquired its own drilling equipment to cut reliance on contractors.

Martinick said the steps taken over the past 12 months – “all advancing the Serowe CBM Project toward becoming Botswana’s first producing LNG asset” – have also “laid a firm foundation for Botala to deliver sustainable energy solutions and help address Southern Africa’s gas supply challenge”.

According to Botala’s annual report, certified 2C contingent gas resources at Serowe rose about 42% to 454bn cubic feet (471 petajoules) during the year, supported by appraisal drilling. Phase one of a bankable feasibility study was completed, with phase two under way alongside an offtake partner. The company also won a tender to build a 4 MW solar plant at its planned Serowe Energy Hub, indicating plans to combine gas and renewable power.

In August, Botala signed a letter of intent with South Africa’s SCAW Metals Group for up to 3.5 petajoules of LNG annually. The company described the deal as binding, and management estimates it could generate about AUD 38mn ($25mn) in revenues once production begins. First commercial gas supply is targeted for 2027/28, though the annual report noted ongoing reliance on new funding to deliver projects.

Botala’s shares last traded at 85 thebe on the Botswana Stock Exchange, with turnover of about $9.5K over the past 12 months.