Tlou Energy (ASX: TOU) is raising $13.4 million to fund an expanded pilot and core hole program at its Karoo Central coal seam gas project in Botswana.
It has already raised $5.7 million from a placement of 19 million shares priced at $0.30 each and a further $2.9 million from the institutional component of its fully underwritten entitlement offer.
The company will now offer retail shareholders the one for four entitlement offer priced at $0.30 per share to raise the remaining $4.8 million.
This is fully underwritten by Morgans Corporate and Integra Advisory Partners. Tlou’s managing director and other directors have also entered into sub-underwriting agreements.
Proceeds will be used for an expanded pilot and core hole program at Karoo Central involving up to two core wells and two additional pilot pods.
It will also be applied to corporate overheads and provide additional working capital.
Karoo Central
At Karoo Central, the company’s Lesedi 1B well has successfully intersected the Lesedi 1P vertical well, completing the Lesedi Pilot Pod.
This will now be put into production, joining the Selemo Pod where production testing is already underway.
Other companies operating in the Kalahari Karoo Basin include fellow Australian junior Magnum Power and Energy (ASX: MPE) and industry majors such as Sasol, Origin Energy (ASX: ORG) and Exxaro Resources.
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