Proactiveinvestors United Kingdom Tlou Energy Ltd https://www.proactiveinvestors.co.uk Proactiveinvestors United Kingdom Tlou Energy Ltd RSS feed en Sun, 19 May 2019 15:41:03 +0100 http://blogs.law.harvard.edu/tech/rss Genera CMS action@proactiveinvestors.com (Proactiveinvestors) action@proactiveinvestors.com (Proactiveinvestors) <![CDATA[News - Tlou Energy’s investors await clarity over Botswana tender decision ]]> https://www.proactiveinvestors.co.uk/companies/news/220293/tlou-energys-investors-await-clarity-over-botswana-tender-decision-220293.html Tlou Energy Limited (LON:TLOU) investors will be looking forward to further clarification over an apparent positive result of its tender for a coal bed methane based pilot power plant in Botswana.

The formal process got underway in 2018 after the Botswana authorities requested tenders for the development of a plant with up to 100 megawatts capacity.

AIM-quoted Tlou was one of two applicants, with the other being Botswana firm Sekaname.

WATCH: Tlou Energy secures final environmental approval as it awaits RFP decision

Previously, both tenders passed technical assessment and the process advanced to the evaluation of the financial elements of the tenders.

Tlou today released a stock exchange statement including an announcement by Botswana’s Public Procurement and Asset Disposal Board, which was published in a Botswana newspaper.

It states that Botswana’s Ministry of Minerals Resources, Green Technology and Energy Security has requested to engage in negotiations with Tlou and Sekaname in respect of their tenders.

The Botswana announcement also includes the text: “Decision: Approved” which could indicate that the process has been successfully concluded, though it lacks any further detail or context.

Tlou, in its stock market statement, told investors: “The company will liaise with the Ministry of Minerals Resources, Green Technology and Energy Security and the PPADB to obtain further clarity and will update the market once official confirmation has been received.”

The company also noted that its submission outlined a staged development commencing with up to 10MW of generation, and, upon successful completion of the initial project it would seek to expand.

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Wed, 15 May 2019 08:27:00 +0100 https://www.proactiveinvestors.co.uk/companies/news/220293/tlou-energys-investors-await-clarity-over-botswana-tender-decision-220293.html
<![CDATA[RNS press release - Public Procurement & Asset Disposal Board Decision ]]> https://www.proactiveinvestors.co.uk/companies/rns/13042/LSE20190515070017_14074085/ Wed, 15 May 2019 07:00:17 +0100 https://www.proactiveinvestors.co.uk/companies/rns/13042/LSE20190515070017_14074085/ <![CDATA[Media files - Tlou Energy secures final environmental approval as it awaits RFP decision ]]> https://www.proactiveinvestors.co.uk/companies/stocktube/13254/tlou-energy-secures-final-environmental-approval-as-it-awaits-rfp-decision-13254.html Wed, 08 May 2019 10:44:00 +0100 https://www.proactiveinvestors.co.uk/companies/stocktube/13254/tlou-energy-secures-final-environmental-approval-as-it-awaits-rfp-decision-13254.html <![CDATA[News - TLOU Energy gets environmental greenlight for CBM fuelled power plant ]]> https://www.proactiveinvestors.co.uk/companies/news/219449/tlou-energy-gets-environmental-greenlight-for-cbm-fuelled-power-plant-219449.html TLOU Energy Ltd (LON:TLOU) revealed that Botswana's Department of Environmental Affairs has approved the company’s environmental impact statement (EIS) for its planned coal bed methane project.

The EIS was for a 20 megawatt coal bed methane fuelled power generation plant, plus a 66kV Transmission Line to Serowe and a solar farm with a capacity of up to 20 megawatts.

READ: Tlou Energy makes priorities clear as it advances CBM venture

The approval was described as a “major achievement” as it represents the final environmental authorisation needed to advance the Lesedi project through to commercialisation. The approval remains valid for 30 years.

The company said the approval would allow it the flexibility to rapidly expand to 20MW of CBM generation, with the added renewable capacity from the solar farm.

TLOU chief executive Tony Gilby said the approval further de-risks the Lesedi project.

“The granting of the downstream EIS is great news for the company as it gives the final environmental authorisation for the initial proposed development of up to 10MW of power generation and allows for a further 10MW of CBM power generation. This gives the company the option to rapidly expand to 20MW,” he added.

In afternoon trading, shares in TLOU were 9.5% higher at 7.45p.

In a note to clients, analysts at ‘house’ broker Shore capital said: “We agree that downstream EIS approval is excellent news for Tlou, as it gives final environmental authorisation for the initial proposed development of up to 10MW, whilst providing the option to rapidly expand to 20MW.

“With an active work programme underway and strong progress being made at Lesedi, we continue to see excellent scope for Tlou to become a leading Southern African-focused independent power producer.”

They added: “We see some very exciting potential catalysts on the horizon in the near term, particularly with regard to a definitive result from the current RFP tender process and the announcement of initial production test results from the ‘Lesedi 3’ and ‘Lesedi 4’ wells.”

 -- Adds analys comment, updates share price --

 

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Wed, 01 May 2019 08:21:00 +0100 https://www.proactiveinvestors.co.uk/companies/news/219449/tlou-energy-gets-environmental-greenlight-for-cbm-fuelled-power-plant-219449.html
<![CDATA[RNS press release - Approval Of Downstream EIS ]]> https://www.proactiveinvestors.co.uk/companies/rns/13042/LSE20190501070006_14058407/ Wed, 01 May 2019 07:00:06 +0100 https://www.proactiveinvestors.co.uk/companies/rns/13042/LSE20190501070006_14058407/ <![CDATA[News - Tlou Energy makes priorities clear as it advances coal bed methane venture ]]> https://www.proactiveinvestors.co.uk/companies/news/219255/tlou-energy-makes-priorities-clear-as-it-advances-coal-bed-methane-venture-219255.html Tlou Energy Limited (LON:TLOU) highlighted its three key priorities as it updated investors with its quarterly operations update.

Confirming gas flows at the Lesedi coal bed methane project is among them, following the recent completion of drilling activities which created the basis of the company’s first production pods – testing operations are presently underway.

READ: Tlou Energy builds on position in Botswana

The company also seeks to prove additional gas reserves and contingent Resources across the Lesedi, Mamba and Boomslang project areas.

And, thirdly, the aim is to secure clear pathway towards a power purchase agreement that would open up connection to the local power grid and access to the southern African power pool.

Presently, the company is in a tender process with the Botswana authorities which would, if successful, provide one route to market.

Operational highlights

In terms of operational achievement, the company noted that the Lesedi drill programme completed on time and on budget.

The technical phase of the tender process was completed and it has now moved into the financial assessment phase. A definitive result from the process is expected in near term, Tlou added.

Some A$4.1mln of new capital was recently raised, since the end of the quarter being referenced, with sophisticated and institutional investors in Australia and Botswana taking new shares. Tlou had A$2.5mln of cash at the end of the quarter.

In a note to clients, analysts at ‘house’ broker Shore Capital commented: “With an active work programme underway and strong progress being made at Lesedi, we continue to see excellent scope for Tlou to become a leading Southern African-focused independent power producer.”

In afternoon trading, shares in Tlou Energy were 3% higher at 6.90p.

 -- Adds analyst comment, share price --

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Mon, 29 Apr 2019 09:12:00 +0100 https://www.proactiveinvestors.co.uk/companies/news/219255/tlou-energy-makes-priorities-clear-as-it-advances-coal-bed-methane-venture-219255.html
<![CDATA[RNS press release - Operational Report - Quarter Ending 31 March 2019 ]]> https://www.proactiveinvestors.co.uk/companies/rns/13042/LSE20190429070009_14054527/ Mon, 29 Apr 2019 07:00:09 +0100 https://www.proactiveinvestors.co.uk/companies/rns/13042/LSE20190429070009_14054527/ <![CDATA[RNS press release - TR-1: Notification of Major Holdings ]]> https://www.proactiveinvestors.co.uk/companies/rns/13042/LSE20190418180022_14047158/ Thu, 18 Apr 2019 18:00:22 +0100 https://www.proactiveinvestors.co.uk/companies/rns/13042/LSE20190418180022_14047158/ <![CDATA[News - Tlou Energy advances as it raises £1.6mln from Botswana investors ]]> https://www.proactiveinvestors.co.uk/companies/news/218665/tlou-energy-advances-as-it-raises-16mln-from-botswana-investors-218665.html Tlou Energy Ltd (LON:TLOU) has raised the equivalent of £1.6mln (A$2.9mln) through a share sale in Botswana.

Sophisticated investors in Botswana have subscribed for 29mln new Tlou shares at the equivalent price of 5.5p (10 Australian cents) – specifically, the investment comes from a long-term existing shareholder as well as a new Botswana-based fund manager.

It comes as Tlou continues to advance its coal bed methane project in Botswana and follows a A$1.2mln funding earlier this month.

WATCH: Tlou advancing discussions with Botswana investors to expand field operations

"We welcome the confidence shown in the company by the fund managers who participated in this strategic placement,” said Tony Gilby, Tlou managing director.

“It has been one of the company's stated goals to increase the local ownership of the company as we believe this will have long term benefits for both the local and international shareholders. 

“It is very pleasing to welcome to our registry a new local fund manager, along with further investment by our largest shareholder, and I would like to thank them for their support."

In afternoon trading, shares in Tlou Energy were 8.7% higher at 6.25p.

 -- Adds share price --

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Tue, 16 Apr 2019 08:12:00 +0100 https://www.proactiveinvestors.co.uk/companies/news/218665/tlou-energy-advances-as-it-raises-16mln-from-botswana-investors-218665.html
<![CDATA[RNS press release - Placement with Botswana based investors ]]> https://www.proactiveinvestors.co.uk/companies/rns/13042/LSE20190416070013_14042081/ Tue, 16 Apr 2019 07:00:13 +0100 https://www.proactiveinvestors.co.uk/companies/rns/13042/LSE20190416070013_14042081/ <![CDATA[Media files - Tlou Energy advancing discussions with Botswana investors to expand field operations ]]> https://www.proactiveinvestors.co.uk/companies/stocktube/12998/tlou-energy-advancing-discussions-with-botswana-investors-to-expand-field-operations-12998.html Mon, 15 Apr 2019 10:24:00 +0100 https://www.proactiveinvestors.co.uk/companies/stocktube/12998/tlou-energy-advancing-discussions-with-botswana-investors-to-expand-field-operations-12998.html <![CDATA[RNS press release - Allotment of Placement shares ]]> https://www.proactiveinvestors.co.uk/companies/rns/13042/LSE20190412070005_14038588/ Fri, 12 Apr 2019 07:00:05 +0100 https://www.proactiveinvestors.co.uk/companies/rns/13042/LSE20190412070005_14038588/ <![CDATA[News - Tlou Energy raises AU$1.2mln in premium share placing ]]> https://www.proactiveinvestors.co.uk/companies/news/218122/tlou-energy-raises-au12mln-in-premium-share-placing-218122.html Tlou Energy Limited (LON:TLOU) (ASX:TLOU) has raised AU$1.2mln, in a premium priced placing, to ease what was described as “near-term financial pressure”.

The company, in a statement, revealed that it will issue new shares to "Sophisticated" existing shareholders at a price of 10 Australian cents per share, a 5% premium to the ASX closing price on Friday.

"We welcome the confidence shown in the company by the two existing shareholders who participated in this strategic placement,” said Tony Gilby, Tlou chief executive.

READ: Tlou Energy builds on position in Botswana ahead of key results

“The additional capital also removes perceived near-term financial pressure from the company, as upon any successful gas flows and/or tender result we will not need to immediately raise capital. Rather, this allows the company ample time to assess the available financing options and to help position Tlou Energy as part of the solution to the looming regional power shortage,” he added.

The subscribing shareholders agreed to a voluntary 12-month escrow of the new shares, meaning they can’t be sold in the first year following the placing.

In a note to clients, analysts at ‘house’ broker Shore Capital pointed out: “Our last published fair value estimate for Tlou stands at approximately 25p/share, and we envisage only a minor adjustment to our valuation due to the minimal level of placing-related dilution (2.85% of the enlarged share capital)."

They added: “With an active work programme underway and strong progress being made with initial development operations at Lesedi, we continue to see excellent scope for Tlou to become a leading Southern African-focused independent power producer.”

In mid-morning trading, share in Tlou Energy were 8.1% higher at 6.00p.

 -- Adds analyst comment, share price --

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Mon, 08 Apr 2019 07:57:00 +0100 https://www.proactiveinvestors.co.uk/companies/news/218122/tlou-energy-raises-au12mln-in-premium-share-placing-218122.html
<![CDATA[RNS press release - AUD$1.2 million equity raising at premium ]]> https://www.proactiveinvestors.co.uk/companies/rns/13042/LSE20190408070007_14031652/ Mon, 08 Apr 2019 07:00:07 +0100 https://www.proactiveinvestors.co.uk/companies/rns/13042/LSE20190408070007_14031652/ <![CDATA[News - Tlou Energy builds on position in Botswana ahead of key results at Lesedi ]]> https://www.proactiveinvestors.co.uk/companies/news/217634/tlou-energy-builds-on-position-in-botswana-ahead-of-key-results-at-lesedi-217634.html  

Tlou Energy Limited (LON:TLOU) has re-submitted its tender for the 100Mw Lesedi CBM-power station Just added another 1,000 sq km of acreage near Lesedi with Boomslang licence Three well development programme completed at Lesedi in March to prove-up CBM reserves. Strong gas indications were observed while drilling and initial water flow is similarly very encouraging. Production from Lesedi 3P is targeted to commence in early 2019 with an extended test to de-water and lower the pressure in the coal seam to achieve gas flow.

 

What it owns

Lesedi is one of two projects Tlou has in Botswana and comprises five CBM prospecting licences covering an area of approximately 3,800 sq km.

The company has just been awarded the 1,000 sq km Boomslang licence in Botswana close to Lesedi, while it also owns the 4,500 sq km Mamba field to take its total acreage to 9,300 sq km.

What the boss says

"I am very encouraged by the recently completed drilling program and in particular the strong gas indications observed to date,” said Tony Gilby, Tlou managing director.

“Furthermore, the good initial water flow, which is higher than that previously observed at Selemo, is potentially indicative of good permeability and therefore potentially good gas flows in this geologically high-graded area.

Video

 

Inflection points

Test flow results from Lesedi 3P

Result of tender re-submission

Additional projects from partnership with IPC, which has a US250mln fund to develop power stations in sub-Saharan Africa.

Blue sky: 25p fair value target

House broker Shore Capital said: “Lesedi 3P” is a vertical well and the first in Tlou’s planned production drilling programme, which aims to provide gas flow data in the proposed initial development area. 

Shore Capital’s fair value estimate for Tlou stands at approximately 25p/share and with a very active work planned, the broker sees ‘excellent scope for Tlou to become a leading Southern African-focused independent power producer’.

At 5.85p, Tlou is valued at £23.5mln.

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Mon, 01 Apr 2019 10:01:00 +0100 https://www.proactiveinvestors.co.uk/companies/news/217634/tlou-energy-builds-on-position-in-botswana-ahead-of-key-results-at-lesedi-217634.html
<![CDATA[News - Tlou Energy awarded more CBM acreage in Botswana ]]> https://www.proactiveinvestors.co.uk/companies/news/217613/tlou-energy-awarded-more-cbm-acreage-in-botswana-217613.html Tlou Energy Limited (LON:TLOU) has picked up a new prospecting licence in Botswana in the same trend as its existing Lesedi coal bed methane project.

The Boomslang licence covers 1,000sq km and takes the company’s total acreage in the area to 9,300 sq km and runs for an initial term of 3 years. 

WATCH: Q2 'the one to watch' for Tlou Energy as it approaches key milestones

Tlou recently completed two development pods – each containing three wells - at the flagship Lesedi project, involving de-watering prior to controlled gas flows.

'House' broker SP Angel says Boomslang is a highly complementary addition to Tlou’s asset base in Botswana, which brings further critical mass to the portfolio.

The broker’s fair value estimate for Tlou is approximately 25p/share underpinned by an active work programme underway and progress made with initial development operations at Lesedi.

In afternoon trading, shares in Tlou were 1.7% higher at 5.85p.

-- Adds shares price --

 

 

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Mon, 01 Apr 2019 08:01:00 +0100 https://www.proactiveinvestors.co.uk/companies/news/217613/tlou-energy-awarded-more-cbm-acreage-in-botswana-217613.html
<![CDATA[RNS press release - New Prospecting Licence Area ]]> https://www.proactiveinvestors.co.uk/companies/rns/13042/LSE20190401070801_14022588/ Mon, 01 Apr 2019 07:08:01 +0100 https://www.proactiveinvestors.co.uk/companies/rns/13042/LSE20190401070801_14022588/ <![CDATA[Media files - Q2 'the one to watch' for Tlou Energy as it approaches key milestones ]]> https://www.proactiveinvestors.co.uk/companies/stocktube/12640/q2--the-one-to-watch--for-tlou-energy-as-it-approaches-key-milestones-12640.html Tue, 19 Mar 2019 10:04:00 +0000 https://www.proactiveinvestors.co.uk/companies/stocktube/12640/q2--the-one-to-watch--for-tlou-energy-as-it-approaches-key-milestones-12640.html <![CDATA[News - Tlou Energy may be set for significant upside as CBM project advances ]]> https://www.proactiveinvestors.co.uk/companies/news/216627/tlou-energy-may-be-set-for-significant-upside-as-cbm-project-advances-216627.html Tlou Energy Ltd (LON:TLOU) shares could be worth much more than the current market value, that’s according to house broker Shore Capital.

Reacting to the latest news from Tlou’s Lesedi coal bed methane project in Botswana, the broker gave its view on what the company’s assets are worth.

“Ahead of further updates, our fair value estimate for Tlou stands at approximately 25p per share; with an active work programme underway and strong progress being made at Lesedi, we continue to see excellent scope for Tlou to become a leading Southern African-focused independent power producer,” Shore Capital analyst Craig Howie said.

For context, Tlou shares currently trade at around 5.55p in London’s AIM market – so the ‘fair value’ figure put forward by Shore would be nearly five times higher.

Production pods complete

It comes after Tlou updated investors on its drilling programme in Botswana. The company said that two development pods – each containing three wells - have been completed and, they are now de-watering prior to controlled gas flows.

This concludes the current programme of drilling and Tlou noted that its costs to date have been in line with budget.

Tlou highlighted that strong gas indications were observed while drilling and initial water flow is similarly very encouraging.

"I am very encouraged by the recently completed drilling program and in particular the strong gas indications observed to date,” said Tony Gilby, Tlou managing director.

“Furthermore, the good initial water flow, which is higher than that previously observed at Selemo, is potentially indicative of good permeability and therefore potentially good gas flows in this geologically high-graded area.

“Completing the wells in a timely manner and on budget was a great effort by the field staff and they are to be commended for their achievements."

Tender process continues

One potential reason why the market value is below the level suggested by Shore Capital is that whilst operational progress can be seen, the commercial future of the project has yet to be secured.

Tlou is one of two companies presently competing in a formal tender process run by the Botswana government for a gas-to-power project, to be fed by coal bed methane gas resources.

Earlier this month, Tlou told investors it had received confirmation that the technical stage of the Request for Proposal (RFP) for Development of CBM fuelled power plants in Botswana has been passed.

It meant that the Botswana Public Procurement and Asset Disposal Board (PPADB) had opened the financial phase of the tender process.

Tlou highlighted that its proposal received a technical score of 89.8%, while rival Botswana firm Sekaname was marked at 86.4%.

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Mon, 18 Mar 2019 10:00:00 +0000 https://www.proactiveinvestors.co.uk/companies/news/216627/tlou-energy-may-be-set-for-significant-upside-as-cbm-project-advances-216627.html
<![CDATA[News - Tlou Energy completes second coal bed methane well pod ]]> https://www.proactiveinvestors.co.uk/companies/news/216610/tlou-energy-completes-second-coal-bed-methane-well-pod-216610.html Tlou Energy Limited (LON:TLOU) shares rose on Monday after the explorer updated investors on its drilling programme in Botswana.

The company said that two development pods – each containing three wells - have been completed and they are now de-watering prior to controlled gas flows.

This concludes the current programme of drilling and Tlou noted that its costs to date have been in line with budget.

It highlighted that strong gas indications were observed while drilling and initial water flow is similarly very encouraging.

READ: Tlou Energy positive as Botswana tender passes technical phase

"I am very encouraged by the recently completed drilling program and in particular the strong gas indications observed to date,” said Tony Gilby, Tlou managing director.

“Furthermore, the good initial water flow, which is higher than that previously observed at Selemo, is potentially indicative of good permeability and therefore potentially good gas flows in this geologically high-graded area. 

“Completing the wells in a timely manner and on budget was a great effort by the field staff and they are to be commended for their achievements."

In a note to clients, analysts at SPAngel commented: “While some will say that this news is of limited importance need to remember that CBM wells are as much about ‘cookie cutter’ development drilling as much as they are about the productivity of the wells themselves.”

They added: “Consequently, this news is another positive step towards a successful commerciality. While the single largest step will be delivered in the shape of the wells' performance and deliverability, this s still an important step.”

In lunchtime trading, shares in Tlou Energy were 4.5% higher at 5.75p.

 -- Adds analyst comment, share price --

 

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Mon, 18 Mar 2019 07:40:00 +0000 https://www.proactiveinvestors.co.uk/companies/news/216610/tlou-energy-completes-second-coal-bed-methane-well-pod-216610.html
<![CDATA[RNS press release - Field Operations Update ]]> https://www.proactiveinvestors.co.uk/companies/rns/13042/LSE20190318070003_14004948/ Mon, 18 Mar 2019 07:00:03 +0000 https://www.proactiveinvestors.co.uk/companies/rns/13042/LSE20190318070003_14004948/ <![CDATA[News - Tlou Energy positive as Botswana tender passes technical phase ]]> https://www.proactiveinvestors.co.uk/companies/news/216358/tlou-energy-positive-as-botswana-tender-passes-technical-phase-216358.html Tlou Energy Limited (LON:TLOU) told investors it has received confirmation that the technical stage of the Request for Proposal (RFP) for Development of CBM fuelled power plants in Botswana has been passed.

It means that the Botswana Public Procurement and Asset Disposal Board (PPADB) has now approved a request to open the financial proposal in relation to Tlou’s gas to power tender, as well as the rival proposal from Sekaname.

READ: Watch: Tlou Energy says it's "well positioned for significant advancements”

The two companies last year submitted the proposal for a 100 MW project.

Tlou highlighted that its proposal received a technical score of 89.8% in the tender, while Sekaname was marked at 86.4%.

“The company looks forward to a positive decision on its financial proposal (the final stage of the RFP process) in due course,” Tlou said in the statement.

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Wed, 13 Mar 2019 08:18:00 +0000 https://www.proactiveinvestors.co.uk/companies/news/216358/tlou-energy-positive-as-botswana-tender-passes-technical-phase-216358.html
<![CDATA[RNS press release - Tender Technical Stage Decision Approved ]]> https://www.proactiveinvestors.co.uk/companies/rns/13042/LSE20190313070005_13999819/ Wed, 13 Mar 2019 07:00:05 +0000 https://www.proactiveinvestors.co.uk/companies/rns/13042/LSE20190313070005_13999819/ <![CDATA[Media files - Tlou Energy says it's "well positioned for significant advancements” ]]> https://www.proactiveinvestors.co.uk/companies/stocktube/12356/tlou-energy-says-it-s--well-positioned-for-significant-advancements-12356.html Tue, 26 Feb 2019 11:33:00 +0000 https://www.proactiveinvestors.co.uk/companies/stocktube/12356/tlou-energy-says-it-s--well-positioned-for-significant-advancements-12356.html <![CDATA[News - Tlou Energy says it is well positioned for significant advancements” in the coming months ]]> https://www.proactiveinvestors.co.uk/companies/news/215307/tlou-energy-says-it-is-well-positioned-for-significant-advancements-in-the-coming-months-215307.html Tlou Energy Ltd (LON:TLOU) managing director Tony Gilby, in the company’s financial results statement, highlighted the company’s achievements during 2018 and said it is in a good position to make “further significant advancements” in the coming months.

The results come as Tlou is advancing a well drilling and development programme at the Lesedi coal bed methane project, in Botswana.

Earlier this week, Tlou told investors that it has begun production testing operations at Lesedi, following the completion of the Pod 3 infrastructure, and that it would now proceed with de-watering and the lowering of pressure in the coal seam in order to start gas flows.

READ: Tlou Energy advances CBM well toward production phase

It anticipates initial production performance statistics will be available during the second quarter of this year.

In the meantime, drilling work continues at the Lesedi 4 pod. The 4A lateral well has so far been drilled, and work on the 4B lateral is presently underway. It is planned that 4B will be the final well in the current drilling programme.

Gilby, in Tuesday’s statement, said: “We are proceeding with a series of value-adding field operations, the most significant of which is the drilling of initial development wells (Lesedi 3 and 4) which is on-going. 

“These wells have been positioned in the best technical location and orientation to potentially result in enhanced gas flows compared to what has already been achieved at Selemo. 

“The results of the recently acquired seismic data coupled with an extensive geological review of our area by our independent geological consultants have determined the optimum positioning for the current drilling campaign.”

He added: “In terms of gaining access to the power grid to ultimately monetise our gas via electricity, we have continued to run parallel processes of going down the path of the re-issued gas-to-power tender (while recognising its challenges) as well as going it alone by gaining all of the necessary approvals to independently connect to the grid in any event. 

“The company notes that the Southern African Power Pool region continues to suffer from inadequate investment in electrical power generation capacity and sooner rather than later will again experience significant electrical energy shortages.”

In regards to the financial results, the pre-revenue firm reported a US$1.52mln loss. It ended the December with US$5.52mln of cash and equivalents.

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Tue, 26 Feb 2019 09:12:00 +0000 https://www.proactiveinvestors.co.uk/companies/news/215307/tlou-energy-says-it-is-well-positioned-for-significant-advancements-in-the-coming-months-215307.html
<![CDATA[RNS press release - Interim Results ]]> https://www.proactiveinvestors.co.uk/companies/rns/13042/LSE20190226070020_13981238/ Tue, 26 Feb 2019 07:00:20 +0000 https://www.proactiveinvestors.co.uk/companies/rns/13042/LSE20190226070020_13981238/ <![CDATA[News - Tlou Energy advances CBM well toward production phase ]]> https://www.proactiveinvestors.co.uk/companies/news/215186/tlou-energy-advances-cbm-well-toward-production-phase-215186.html Tlou Energy Ltd (LON:TLOU) told investors that it has now begun production testing operations at the Lesedi coal bed methane project in Botswana.

The company, in a statement, said that the Lesedi 3 development pod has been completed with surface production equipment now installed and operational.

At the moment the company must proceed with de-watering and the lowering of pressure in the coal seam in order to start gas flows.

READ: Tlou Energy believes it will likely secure investment in near term

It anticipates initial production performance statistics will be available during the second quarter of this year.

In the meantime, drilling work continues at the Lesedi 4 pod. The 4A lateral well has so far been drilled, and work on the 4B lateral is presently underway.

It is planned that 4B will be the final well in the current drilling programme.

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Mon, 25 Feb 2019 07:39:00 +0000 https://www.proactiveinvestors.co.uk/companies/news/215186/tlou-energy-advances-cbm-well-toward-production-phase-215186.html
<![CDATA[RNS press release - Production testing underway at Lesedi ]]> https://www.proactiveinvestors.co.uk/companies/rns/13042/LSE20190225070005_13979559/ Mon, 25 Feb 2019 07:00:05 +0000 https://www.proactiveinvestors.co.uk/companies/rns/13042/LSE20190225070005_13979559/ <![CDATA[News - Tlou Energy completes first Lesedi well pod ]]> https://www.proactiveinvestors.co.uk/companies/news/214423/tlou-energy-completes-first-lesedi-well-pod-214423.html Tlou Energy Ltd (LON:TLOU) told investors it has completed its first development pod for the Lesedi coal bed methane project, advancing the project closer to production.

The company, in a stock market statement, said that the Lesedi 3A and Lesedi 3B lateral wells both intersected with the vertical well Lesedi 3P, to complete the development pod.

READ: Tlou eyes likely investment in near term

Dewatering operations and gas flow testing will follow, after the installation of production equipment.

Meanwhile, the drilling rig is being moved to the intended location of the second Lesesdi pod.

Tlou last week said it believes there’s a significant likelihood that it will secure investment in the near term.

The coal bed methane firm confirmed that it is in discussion with parties considering investment into the company either via equity or debt provision.

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Tue, 12 Feb 2019 07:36:00 +0000 https://www.proactiveinvestors.co.uk/companies/news/214423/tlou-energy-completes-first-lesedi-well-pod-214423.html
<![CDATA[RNS press release - First development pod successfully completed ]]> https://www.proactiveinvestors.co.uk/companies/rns/13042/LSE20190212070007_13965652/ Tue, 12 Feb 2019 07:00:07 +0000 https://www.proactiveinvestors.co.uk/companies/rns/13042/LSE20190212070007_13965652/ <![CDATA[News - Tlou Energy believes it will likely secure investment in near term ]]> https://www.proactiveinvestors.co.uk/companies/news/214161/tlou-energy-believes-it-will-likely-secure-investment-in-near-term-214161.html Tlou Energy Limited (LON:TLOU) has said it believes there’s a significant likelihood that it will secure investment in the near term.

The coal bed methane firm, in a stock market statement, confirmed that it is in discussion with parties considering investment into the company either via equity or debt provision.

WATCH: Tlou Energy expects completion of drilling at Lesedi CBM project 'within weeks'

Wednesday afternoon’s statement was in response to a query from the Australian Securities Exchange, specifically in relation to the financial period ended 31 December 2018.

“The company confirmed that it expects to have negative operating cash flows for the coming periods as the Company is engaged in gas exploration and early-stage development,” Tlou said.

It added: “Tlou expects to be able to continue its operations and meet its objectives.

“Operating cash flows have been higher during Q4 2018 and Q1 2019 due to the ongoing drilling programme being undertaken by the Company. This work programme will be completed in Q1 2019, and thereafter operating cash flows will be significantly reduced.”

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Thu, 07 Feb 2019 08:51:00 +0000 https://www.proactiveinvestors.co.uk/companies/news/214161/tlou-energy-believes-it-will-likely-secure-investment-in-near-term-214161.html
<![CDATA[RNS press release - ASX query and response ]]> https://www.proactiveinvestors.co.uk/companies/rns/13042/LSE20190206163004_13960827/ Wed, 06 Feb 2019 16:30:04 +0000 https://www.proactiveinvestors.co.uk/companies/rns/13042/LSE20190206163004_13960827/ <![CDATA[Media files - Tlou Energy expects completion of drilling at Lesedi CBM project 'within weeks' ]]> https://www.proactiveinvestors.co.uk/companies/stocktube/12034/tlou-energy-expects-completion-of-drilling-at-lesedi-cbm-project--within-weeks--12034.html Wed, 30 Jan 2019 11:57:00 +0000 https://www.proactiveinvestors.co.uk/companies/stocktube/12034/tlou-energy-expects-completion-of-drilling-at-lesedi-cbm-project--within-weeks--12034.html <![CDATA[News - Tlou Energy highlights “excellent progress” at Botswana coal bed methane project ]]> https://www.proactiveinvestors.co.uk/companies/news/213134/tlou-energy-highlights-excellent-progress-at-botswana-coal-bed-methane-project-213134.html Tlou Energy Ltd (LON:TLOU) said excellent progress has so far been made with the drilling operation at its Botswana coal bed methane (CBM) project, which began recently.

In its third quarter report, Tlou also highlighted that it has submitted an environmental impact assessment (EIA) for the downstream operations attached to the CBM project and noted that it lodged its re-tender to the Botswana government for the proposed CBM fuelled pilot power plant.

READ: Block Energy upbeat as it heads into 2019

The recently launched pilot well drilling campaign will, subject to positive results, create the basis for the initial gas-to-power project.

“The wells are being drilled as 'dual lateral pods', comprising a single vertical production well intersected by two lateral wells,” Tlou explained.

“The lateral wells will be drilled through the gassy coal seam with gas extracted from this coal produced through the vertical production well where it can be gathered and used for power generation. Up to three pods are planned.”

Each pod comprises three wells, for example, Pod One consists of the vertical Lesedi-3 production well plus two lateral wells labelled Lesedi-3A and Lesedi-3B.

Following the completion of the Lesedi-3 and Lesedi-4 pods (so a total of six wells) the company intends to use a workover rig to open up the wells and connect them to surface production facilities which are yet to be installed.

Dewatering and production testing activities to begin

In the terms of the current progress, Tlou noted that in the past quarter, it drilled both the Lesedi 3 and Lesedi 4 top-hole sections and it expects to complete the drilling of the lateral sections in ‘early 2019’.

“All of the production pods are being drilled in the area proposed for the initial project development and are aimed at confirming gas flows as well as ensuring production readiness prior to commencement of development operations,” Tlou said.

“Dewatering and production testing activities will begin immediately following the completion of the production pods.”

In a note to clients, analysts at ‘house’ broker Shore Capital said: “Our fair value estimate stands at approximately 25p/share and, with a very active work programme underway and strong progress being made at Lesedi, we continue to see excellent scope for Tlou to become a leading Southern African-focused independent power producer.”

Shares in Tlou Energy were changing hands at 5.40p in early afternoon trading, down 0.9% on Tuesday’s close.

 -- Adds analyst comment, share price --

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Wed, 23 Jan 2019 07:56:00 +0000 https://www.proactiveinvestors.co.uk/companies/news/213134/tlou-energy-highlights-excellent-progress-at-botswana-coal-bed-methane-project-213134.html
<![CDATA[RNS press release - OPERATIONAL REPORT - QUARTER ENDING 31 DEC 2018 ]]> https://www.proactiveinvestors.co.uk/companies/rns/13042/LSE20190123070004_13943361/ Wed, 23 Jan 2019 07:00:04 +0000 https://www.proactiveinvestors.co.uk/companies/rns/13042/LSE20190123070004_13943361/ <![CDATA[News - Tlou Energy finds gains as it restarts lateral drilling in coal bed methane wells ]]> https://www.proactiveinvestors.co.uk/companies/news/212577/tlou-energy-finds-gains-as-it-restarts-lateral-drilling-in-coal-bed-methane-wells-212577.html Tlou Energy Ltd (LON:TLOU) shares rose on Tuesday as it told investors that lateral drilling has restarted in the wells at the Lesedi coal bed methane project in Botswana.

The company, in a statement, said that specialist directional drilling crew and other key personnel are now on site.

READ: Tlou Energy's Tony Gilby updates on Lesedi project

Once lateral drilling is complete, the company expects the Lesedi 3 and Lesedi 4 production pods will be completed.

It is planned that surface production equipment will be installed after that. Dewatering and production operations can then follow.

Tlou highlighted that success flowing gas from Lesedi 3 and Lesedi 4 would have the potential to upgrade reserves.

"Thus far, drilling operations at the Lesedi CBM Project have been progressing according to plan. Following the Christmas break, our field team has re-mobilised and has now recommenced drilling activity to complete the production pods at Lesedi from which we intend to produce gas to potentially supply the initial stages of our proposed CBM gas-to-power project,” said Tony Gilby, Tlou managing director.

“We look forward to providing investors with further updates in relation to operational progress specifically, the successful completion of the production pods and commencement of production testing activities.”

Tlou noted that it recently submitted as a response to a Request for Proposal (RFP) for the supply of CBM gas-to-power to the Government of Botswana. 

It added that talks with other potential off-takers as well as development finance providers are in progress.

Additionally, it said that an environmental impact assessment (EIA) for a power generation facility has been submitted.

In afternoon trading, Tlou Energy shares were 2.7% higher at 5.75p.

In a note to clients, analysts at 'house' broker Shore Capital said: "Our fair value estimate stands at approximately 25p/share and, with a very active work programme underway and strong progress being made at Lesedi, we continue to see excellent scope for Tlou to become a leading Southern African-focused independent power producer."

 -- Adds share price, analyst comment --

 

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Tue, 15 Jan 2019 08:38:00 +0000 https://www.proactiveinvestors.co.uk/companies/news/212577/tlou-energy-finds-gains-as-it-restarts-lateral-drilling-in-coal-bed-methane-wells-212577.html
<![CDATA[RNS press release - Recommencement of Drilling and Operational Update ]]> https://www.proactiveinvestors.co.uk/companies/rns/13042/LSE20190115070006_13934359/ Tue, 15 Jan 2019 07:00:06 +0000 https://www.proactiveinvestors.co.uk/companies/rns/13042/LSE20190115070006_13934359/ <![CDATA[Media files - Tlou Energy's Tony Gilby updates on Lesedi drilling and Request for Proposal ]]> https://www.proactiveinvestors.co.uk/companies/stocktube/11589/tlou-energy-s-tony-gilby-updates-on-lesedi-drilling-and-request-for-proposal-11589.html Wed, 12 Dec 2018 10:18:00 +0000 https://www.proactiveinvestors.co.uk/companies/stocktube/11589/tlou-energy-s-tony-gilby-updates-on-lesedi-drilling-and-request-for-proposal-11589.html <![CDATA[News - Tlou Energy higher as it starts preparations for lateral well drilling ]]> https://www.proactiveinvestors.co.uk/companies/news/210451/tlou-energy-higher-as-it-starts-preparations-for-lateral-well-drilling-210451.html Tlou Energy Ltd (LON:TLOU) saw its shares rise on Tuesday as it told investors that ‘top hole’ drilling operations are complete for the Lesedi-3, Lesedi-4 and the ‘optional’ Lesedi- 5 wells.

The group added that the coal bed methane project is on time and in line with budget. Tlou is now preparing to drill the lateral well sections, to be referred to as Lesedi 3A, 3B, 4A, and 4B accordingly.

WATCH: Tlou Energy's Tony Gilby updates on Lesedi drilling and Request for Proposal

"The drilling operations have progressed extremely well, and I would like to thank all our field staff for their excellent work to get to this stage,” said Tony Gilby, Tlou managing director.

“I look forward to the drilling of the lateral sections of Lesedi 3 and Lesedi 4 followed by commencement of production testing operations in early 2019.

“We will keep the market informed as we continue to progress the program."

In early afternoon trading, shares in Tlou Energy were 2.1% higher at 4.90p.

In a note to clients, analysts at ‘house’ broker Shore Capital said: “Our fair value estimate stands at approximately 25p/share and, with a very active work programme underway and strong progress being made at Lesedi, we continue to see excellent scope for Tlou to become a leading Southern African-focused independent power producer.”

 -- Adds share price, analyst comment --

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Tue, 04 Dec 2018 07:46:00 +0000 https://www.proactiveinvestors.co.uk/companies/news/210451/tlou-energy-higher-as-it-starts-preparations-for-lateral-well-drilling-210451.html
<![CDATA[RNS press release - Top-hole drilling successfully completed at Lesedi ]]> https://www.proactiveinvestors.co.uk/companies/rns/13042/LSE20181204070016_13889929/ Tue, 04 Dec 2018 07:00:16 +0000 https://www.proactiveinvestors.co.uk/companies/rns/13042/LSE20181204070016_13889929/ <![CDATA[News - Tlou Energy’s Lesedi drill programme ‘making excellent progress and on budget’ ]]> https://www.proactiveinvestors.co.uk/companies/news/209533/tlou-energys-lesedi-drill-programme-making-excellent-progress-and-on-budget-209533.html Tlou Energy Ltd (LON:TLOU) is making “excellent progress” with the ongoing drill programme at its Lesedi coal bed methane project in Botswana.

The AIM-listed company is currently drilling three ‘dual lateral pods’, comprising a single vertical production well which is intersected by two lateral (or horizontal) wells.

The second vertical well, called Lesedi 4P, has been drilled to a total depth of 577 metres having encountered a “very good target coal horizon”.

READ: Tlou starts busy drill programme at Lesedi

Meanwhile, top-hole drilling has been completed at Lesedi 5P – the third vertical well. Top-hole drilling at Lesedi 3A, the first lateral well in the programme, is ongoing.

Drilling will continue over the coming weeks and into early 2019. The plan is that once all six wells for pods one and two have been drilled, Tlou will complete them using a separate workover rig and surface production facilities will be installed.

The wells will then begin production testing to de-water and lower the pressure in the coal seam to achieve gas flow. Results from these tests will determine whether the third pod, Lesedi 5, will be completed.

Tlou also included a brief update on its tender to the Botswanan authorities for the proposed coal bed methane gas-to-power project.

The response was submitted last month, and the company said it is still awaiting feedback.

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Tue, 20 Nov 2018 07:41:00 +0000 https://www.proactiveinvestors.co.uk/companies/news/209533/tlou-energys-lesedi-drill-programme-making-excellent-progress-and-on-budget-209533.html
<![CDATA[RNS press release - Operations Update - Excellent Progress at Lesedi ]]> https://www.proactiveinvestors.co.uk/companies/rns/13042/LSE20181120070020_13872746/ Tue, 20 Nov 2018 07:00:20 +0000 https://www.proactiveinvestors.co.uk/companies/rns/13042/LSE20181120070020_13872746/ <![CDATA[News - TLOU Energy advances second new Lesedi CBM well ]]> https://www.proactiveinvestors.co.uk/companies/news/208578/tlou-energy-advances-second-new-lesedi-cbm-well-208578.html TLOU Energy Ltd (LON:TLOU) updated investors on its field operations in Botswana where it is advancing the Lesedi coal bed methane project.

It told investors that the vertical Lesedi-3P well had now been drilled down to its total depth of 575 metres.

READ: Tlou Energy believes proposal for Lesedi is compelling

Drilling is also now underway for Lesedi-4P which is the second well in the current programme.

The aim is to unlock gas flow data ahead of the company’s proposed initial project development area. It is anticipated that production start-up for the wells could come in early 2019.

“The wells will be on production for an extended period of time to de-water and lower the pressure in the coal seam to achieve gas flow,” Tlou said in a statement.

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Tue, 06 Nov 2018 07:22:00 +0000 https://www.proactiveinvestors.co.uk/companies/news/208578/tlou-energy-advances-second-new-lesedi-cbm-well-208578.html
<![CDATA[RNS press release - Operations Update ]]> https://www.proactiveinvestors.co.uk/companies/rns/13042/LSE20181106070009_13855924/ Tue, 06 Nov 2018 07:00:09 +0000 https://www.proactiveinvestors.co.uk/companies/rns/13042/LSE20181106070009_13855924/ <![CDATA[Media files - Tlou Energy team update on pilot production well drilling at Lesedi ]]> https://www.proactiveinvestors.co.uk/companies/stocktube/11102/tlou-energy-team-update-on-pilot-production-well-drilling-at-lesedi-11102.html Mon, 05 Nov 2018 13:05:00 +0000 https://www.proactiveinvestors.co.uk/companies/stocktube/11102/tlou-energy-team-update-on-pilot-production-well-drilling-at-lesedi-11102.html <![CDATA[News - Tlou Energy believes proposal for Lesedi is compelling ]]> https://www.proactiveinvestors.co.uk/companies/news/208104/tlou-energy-believes-proposal-for-lesedi-is-compelling-208104.html Tlou Energy PLC (LON:TLOU) shares rose on Tuesday after the firm said it believes it has ‘submitted a compelling and robust proposal’ for a thermal power station at the Lesedi coal bed methane site in Botswana.

The company, which was asked to re-tender for the contract, said it had ‘outlined a staged development commencing with up to 10MW of generation as well as outlining project feasibility, proposed field development, installation of power generation facilities and supply of power into the grid in Botswana.  

READ: Tlou Energy starts drilling at Lesedi in Botswana

“If Tlou's proposal is successful, this will provide an ideal pathway towards a power purchase agreement, it added. 

“Once an initial development is completed, Tlou Energy's gas field will be connected to the regional grid, thereby opening the possibility for the company to provide power across the region, via the Southern African Power Pool.

Tlou has started to drill pilot production wells at Lesedi, which would form part of the gas-to-power project.

In its latest operational update, it predicted exploration spending of A$4.2mln for the current quarter.

Cash holdings at the end of the quarter were A$9.1mln.

In a note to clients, analysts at ‘house’ broker Shore Capital commented: “Our fair value estimate stands at approximately 25p/share and, with the company’s RFP response now successfully submitted and a very active work programme in progress at Lesedi, we continue to see excellent scope for Tlou to become a leading Southern African-focused independent power producer.”

In afternoon trading, Tlou Energy shares were 2.9% higher at 5.40p.

 -- Adds analyst comment, share price --

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Tue, 30 Oct 2018 09:14:00 +0000 https://www.proactiveinvestors.co.uk/companies/news/208104/tlou-energy-believes-proposal-for-lesedi-is-compelling-208104.html
<![CDATA[RNS press release - OPERATIONAL REPORT - QUARTER ENDED 30 SEPT 2018 ]]> https://www.proactiveinvestors.co.uk/companies/rns/13042/LSE20181030070007_13846735/ Tue, 30 Oct 2018 07:00:07 +0000 https://www.proactiveinvestors.co.uk/companies/rns/13042/LSE20181030070007_13846735/ <![CDATA[News - Tlou Energy starts busy drilling programme at Lesedi in Botswana ]]> https://www.proactiveinvestors.co.uk/companies/news/207555/tlou-energy-starts-busy-drilling-programme-at-lesedi-in-botswana-207555.html Tlou Energy (LON:TLOU) re-submitted its tender for the 100Mw Lesedi coal bed methane-powered power station contract in September,

Both short-listed bidding companies were asked re-submit bids by the Botswana Ministry of Mineral Resources, Green Technology and Energy Security.

WATCH: Tlou Energy to spud first production well at Lesedi next month

Even though there has been no indication when the result of the tender will be published, Tlou has started drilling at Lesedi to test gas flows in the area where the power station is planned.

The first well, 'Lesedi 3P', is scheduled to go down to a depth of 580m and should covert a significant portion of the currently established gas resources to the more certain reserves category.

Tlou said it will drill the Lesedi production wells as 'dual lateral pods', comprising a single vertical production well intersected by two lateral wells. This will be followed by production testing

Production from Lesedi 3P is targeted to commence in early 2019 with the well set for an extended test to de-water and lower the pressure in the coal seam to achieve gas flow.

Botswana the focus

Lesedi is one of two projects Tlou has in Botswana and comprises five CBM prospecting licences covering an area of approximately 3,800 sq km.

Partners in Place

Tlou’s partner on the project is UK-based Independent Power Corporation, which is responsible for the power plant side while Tlou focuses on the gas production.

IPC recently set up its own US$250mln venture with Quantum Global and engineer Tome to develop other power stations in sub-Saharan Africa.

Cleaner than coal-fired power

Gas has been produced in the Selemo area of the Lesedi operation for around a year, and overall Lesedi is estimated to host some 3.2trn cubic feet of gas.

First power from CBM at its field in Botswana followed the installation of a gas generator at the Selemo project area in June. 

It is already the most advanced CBM asset in Botswana.

Mamba another option

In addition, Tlou owns 100% of the adjacent Mamba field covering an area of approximately 4,500 sq km. 

In the event of a gas field development by Tlou, the Mamba area provides flexibility and optionality. 

25p fair value target

House broker Shore Capital said: “Lesedi 3P” is a vertical well and the first in Tlou’s planned production drilling programme, which aims to provide gas flow data in the proposed initial development area. 

Shore Capital’s fair value estimate for Tlou stands at approximately 25p/share and with a very active work planned the broker sees ‘excellent scope for Tlou to become a leading Southern African-focused independent power producer’.

At 5.6p, Tlou is valued at £22.3mln.

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Mon, 22 Oct 2018 10:18:00 +0100 https://www.proactiveinvestors.co.uk/companies/news/207555/tlou-energy-starts-busy-drilling-programme-at-lesedi-in-botswana-207555.html
<![CDATA[News - Tlou Energy starts drilling at Lesedi in Botswana ]]> https://www.proactiveinvestors.co.uk/companies/news/207547/tlou-energy-starts-drilling-at-lesedi-in-botswana-207547.html Tlou Energy Limited (LON:TLOU) has started drilling at Lesedi in Botswana to test gas flows in the area where a new coal bed methane-fired power station is planned.

The first well, 'Lesedi 3P', is scheduled to drill down to a depth of 580m and should covert a significant portion of the currently established gas resources to the more certain reserves category and have potential to deliver gas to the proposed central processing facility and power station planned for nearby.

READ: Tlou Energy excited by Botswana’s emerging coal bed methane industry

CBM production is targeted to commence in early 2019.  

The wells are extended to be on production for an extended period of time to de-water and lower the pressure in the coal seam to achieve gas flow.  

Tlou had also started work on the Environmental Impact Assessment for the power station and proposed transmission lines to connect the Lesedi gas field to the power grid in Botswana.

The company has re-submitted its tender for Botswana's Ministry of Mineral Resources, Green Technology and Energy Security for the contract to build a CBM-fired station with an initial 10Mw capacity.

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Mon, 22 Oct 2018 08:48:00 +0100 https://www.proactiveinvestors.co.uk/companies/news/207547/tlou-energy-starts-drilling-at-lesedi-in-botswana-207547.html
<![CDATA[RNS press release - Operations Update ]]> https://www.proactiveinvestors.co.uk/companies/rns/13042/LSE20181022070007_13836474/ Mon, 22 Oct 2018 07:00:07 +0100 https://www.proactiveinvestors.co.uk/companies/rns/13042/LSE20181022070007_13836474/