Magnum Gas & Power (ASX: MPE) is fast tracking development of its coal bed methane gas discovery within the Central project area of Botswana.
Recently drilled holes are proximate to Tlou Energy's (ASX: TOU) Karoo Central with consistent coal seam of 22 to 36 metres, including CBM gas intersections.
Investors are looking to increase exposure to the basin, highlighted by Tlou’s current total equity raising of $13.4 million, which includes the retail entitlement component being fully underwritten.
Magnum's acreage forms part of a much larger CBM gas field under development by industry majors in Sasol (US$37B Market Cap), Origin Energy (US$15.6B), Exxaro Resources (US$4.9B) and smaller developers such as Kalahari Energy and Tlou Energy (ASX:TOU) $40M.
Magnum and these companies are in the midst of drilling and evaluation programs for CBM, as part of a new multi-billion dollar gas production industry in Botswana.
Magnum’s recent core drill hole intersected 90 metres of carbonaceous material, with 16 metres of clean coal that assayed over 95% methane.
A second hole is ready for coring, testing and analysis, and drilling is planned for an additional two holes.
Magnum also has coal seam gas interests in the outlying fringes of Sydney, Australia, with a strong management team that has a proven record in the energy development.
Notably, non-executive director Tom Fontaine previously co-founded Queensland coal seam gas company Pure Energy Resources, which was acquired by BG Group for around $1 billion in 2009.
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