Tlou Energy (ASX:TOU) has completed the fully underwritten retail component of an entitlement offer, raising $4.8 million to advance its Karoo Central coal bed methane (CBM) project in Botswana.
The company has now raised gross proceeds $13.4 million from the combined retail, placement and institutional components of the offer.
This show of support demonstrates that investors are looking to increase exposure to the Botswana basin.
Significantly, Tlou is aiming to certify the first reserves of a CBM reservoir in Botswana.
Having seen an investment of over $40 million on drilling and testing programs to date by Tlou and the previous operator, and over 70 wells drilled along with the acquisition of a comprehensive technical data base, the CBM project is well advanced.
Achieving reserve certification is the next step in the planned commercialisation of Tlou’s assets in Botswana.
Majors active in the basin include Sasol (US$37B Market Cap), Origin Energy (US$15.6B), Exxaro Resources (US$4.9B).
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