Botswana Issues Two CBM Licences to UK's Nodding Donkey Plc

Equatorial Oil and Gas, a subsidiary of Nodding Donkey, has been awarded two contiguous coal bed methane (CBM) licences in Botswana covering 1,574 square kilometres.

The two licences are both located within the Western Central Kalahari sub-basin and are in close geologic proximity to proven CBM gas resources, Nodding Donkey said Wednesday.

Previous work was undertaken on these licences when they were originally part of a farm-in agreement between Equatorial and African Coal and Gas Corporation Ltd. The farm-in was subsequently terminated by mutual consent, enabling Equatorial to re-apply for the key licences in its own name.

According to Nodding Donkey, Recent work has confirmed the licences have strong potential for hosting natural gas.

Noel Lyons, CEO, Equatorial Oil & Gas commented: "The prospects for Botswana to host major natural gas resources continues to strengthen, and through its substantial land holding our Company is set to play a significant role in developing and commercialising this opportunity."

The company through Equatorial controls the largest land position in Botswana for hydrocarbons, with one petroleum licence covering about 56,000 square kilometres, two coal bed methane licences covering 1,574 square kilometres, and three petroleum licence applications covering in excess of a further 70,000 square kilometres.