Tlou Energy Ltd (LON:TLOU, ASX:TOU) has made good progress over the last quarter, says house broker Shore Capital.
A contract for a 250 kilometre seismic survey that starts this quarter and a mining licence application at the Lesedi CBM-to-power project in Botswana were the highlights.
The seismic’s aim will be to extend the base of reserves and resources, while the anticipated award of a mining licence is expected to provide long term tenure and rights to commercialise the Lesedi gas.
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A new gas generator has reduced costs versus diesel generation, in addition to providing an effective proof of concept for gas generation.
The broker noted: “We continue to believe that Tlou is in pole position to emerge as the winner in the current RFP tender process and that the stage is now set for its transition into a leading Botswana independent power producer.”
Shares were unchanged at 7.8p.