- Tlou Energy Limited (LON:TLOU) is an aspiring gas production and electricity generation company
- Enormous gas asset in Botswana with 9,300 sq km of acreage and proven gas (CBM) reserves
- The first phase of multiple production wells completed at Lesedi in March are currently being production tested.
- The production wells Lesedi 3P and 4P are currently flowing gas with flow rates expected to increase over time with first electricity sales targeted for Q4 2020.
- Tlou’s projects are 100% owed and operated in an area which has a huge regional power demand.
What it owns
The Lesedi project is one of three projects Tlou has in Botswana. The Lesedi project has Environmental Approvals and a Mining Licence in place as well as four further CBM prospecting licences covering an area of approximately 3,800 Km2.
The company’s most recently acquired acreage is the 1,000 Km2 Boomslang licence close to Lesedi, while it also owns the 4,500 Km2 Mamba field to take its total acreage to 9,300 Km2.
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.
- Increasing Gas flow results from Lesedi 3P and 4P
- Finalisation of Power Purchase Agreement with the Botswana Government
- Additional CBM reserves being booked in Tlou’s projects
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.