Tlou Energy Limited (LON:TLOU) has seen a huge increase in reserves at the Lesedi and Mamba coal bed methane projects in Botswana.
Proved and probable reserves (2P) jumped 944% to 40.8 billion cubic feet (BCF) 3.9 from BCF, while the less certain 3P category rose by 63% to 426.6BCF from 261.1BCF.
WATCH: Tlou Energy 'in a great position' after significant increase in Botswana gas reserves
Bruce McConachie of SRK Consulting certified the reserves.
Tony Gilby, Tlou’s managing director, described it as a ‘very significant’ upgrade.
“The recent seismic survey and core-hole drilling campaign, along with the Selemo pilot wells producing sustained gas flows for a substantial period of time, confirms that there is huge gas production potential for Tlou's area.
“Adding reserves and planning for grid connection reinforces the Company's objective to become the first company to sell power generated by CBM gas in Botswana."
Tlou owns 100% of both the Lesedi and Mamba project. Lesedi accounts for 62% of the reserves.
Shares jumped 28% to 10.88p, valuing the group at just under £26mln.