Tlou Energy Limited (LON:TLOU, ASX:TOU) has updated investors on its coal bed methane projects in Botswana following a debriefing meeting with the authorities.
The meeting provided the company with more information following the government’s cancellation of a tendering process for CBM-based power projects, and confirmed that original bidders like Tlou would be asked to re-tender.
READ: Tlou Energy focused on coal bed methane in Botswana
In a statement, Tlou revealed that neither of the submitted bids met compliance requirements and it has been given details regarding the non-compliant issues.
“The non-compliant areas were discussed, and it was clear that most of them could not be complied with, as the requirements could only be met by a party that was already in commercial operation,” the company said.
Tlou added that it believes the ministry is amenable to amending the tender document as required, and, it intends to write to the ministry to respond to all compliance matters raised.
“The company will also suggest that the Ministry consider establishing a separate process for a smaller pilot project without the necessity for a long tender process.
Favourable outcome can be achieved
“Once this pilot project is successfully operating, it could then lead to a re-tender in line with the Ministry's current plan.”
Tlou told investors that it is confident that a favourable outcome can be achieved, as there’s an eagerness on both sides to get the CBM industry up and running in Botswana.
In Thursday’s trading, Tlou shares were down around 20%, changing hands at 8.58p.