TLOU Energy Ltd (LON:TLOU) has confirmed a £1.4mln share placing and launched a further share offer seeking to raise a further £3.2mln of new capital.
The AIM-quoted coal bed methane group intends to use the cash proceeds to accelerate a well drilling campaign, designed to deliver gas production, and to support negotiations over a power purchasing deal in Botswana.
READ: Tlou Energy’s Tony Gilby in Botswana to advance grid talks
"This Placement provides significant momentum for Tlou to progress the Lesedi CBM Project with the objective of supplying the first gas-fired power in Botswana,” said Tony Gilby, Tlou managing director.
“We were very pleased with the introduction of a number of new investors to the company along with continued support from existing shareholders in Australia and the UK.
He added: “This raising facilitates significant progress in the field through drilling of what could effectively be the first development wells at the Lesedi project, with the advantage of progressing offtake and regulatory requirements in tandem.
“With offtake negotiations progressing very well, reinforcing the company's confidence of securing an agreement, and regulatory requirements also on track, a successful drilling program would see the company firmly on target towards getting first power into the grid as soon as possible."