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Tlou Energy Ltd: DEEP DIVE

Tlou Energy builds on position in Botswana ahead of key results at Lesedi

Lesedi is one of two projects Tlou has in Botswana and comprises five CBM prospecting licences
coal mine
OVERVIEW: TLOU The Big Picture
Tlou now has 9,300 sq km under licence in Botswana


  • Tlou Energy Limited (LON:TLOU) has re-submitted its tender for the 100Mw Lesedi CBM-power station

  • Just added another 1,000 sq km of acreage near Lesedi with Boomslang licence

  • Three well development programme completed at Lesedi in March to prove-up CBM reserves.

  • Strong gas indications were observed while drilling and initial water flow is similarly very encouraging.

  • Production from Lesedi 3P is targeted to commence in early 2019 with an extended test to de-water and lower the pressure in the coal seam to achieve gas flow.


What it owns

Lesedi is one of two projects Tlou has in Botswana and comprises five CBM prospecting licences covering an area of approximately 3,800 sq km.

The company has just been awarded the 1,000 sq km Boomslang licence in Botswana close to Lesedi, while it also owns the 4,500 sq km Mamba field to take its total acreage to 9,300 sq km.

What the boss says

"I am very encouraged by the recently completed drilling program and in particular the strong gas indications observed to date,” said Tony Gilby, Tlou managing director.

“Furthermore, the good initial water flow, which is higher than that previously observed at Selemo, is potentially indicative of good permeability and therefore potentially good gas flows in this geologically high-graded area.



Inflection points

Test flow results from Lesedi 3P

Result of tender re-submission

Additional projects from partnership with IPC, which has a US250mln fund to develop power stations in sub-Saharan Africa.

Blue sky: 25p fair value target

House broker Shore Capital said: “Lesedi 3P” is a vertical well and the first in Tlou’s planned production drilling programme, which aims to provide gas flow data in the proposed initial development area. 

Shore Capital’s fair value estimate for Tlou stands at approximately 25p/share and with a very active work planned, the broker sees ‘excellent scope for Tlou to become a leading Southern African-focused independent power producer’.

At 5.85p, Tlou is valued at £23.5mln.

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