Proactive Investors - Run By Investors For Investors

Tlou Energy makes priorities clear as it advances coal bed methane venture

In the near term, the company awaits the outcome of well testing and separately the CBM tender process
oil and gas operations
It ended the quarter with A$2.5mln of cash

Tlou Energy Limited (LON:TLOU) highlighted its three key priorities as it updated investors with its quarterly operations update.

Confirming gas flows at the Lesedi coal bed methane project is among them, following the recent completion of drilling activities which created the basis of the company’s first production pods – testing operations are presently underway.

READ: Tlou Energy builds on position in Botswana

The company also seeks to prove additional gas reserves and contingent Resources across the Lesedi, Mamba and Boomslang project areas.

And, thirdly, the aim is to secure clear pathway towards a power purchase agreement that would open up connection to the local power grid and access to the southern African power pool.

Presently, the company is in a tender process with the Botswana authorities which would, if successful, provide one route to market.

Operational highlights

In terms of operational achievement, the company noted that the Lesedi drill programme completed on time and on budget.

The technical phase of the tender process was completed and it has now moved into the financial assessment phase. A definitive result from the process is expected in near term, Tlou added.

Some A$4.1mln of new capital was recently raised, since the end of the quarter being referenced, with sophisticated and institutional investors in Australia and Botswana taking new shares. Tlou had A$2.5mln of cash at the end of the quarter.

In a note to clients, analysts at ‘house’ broker Shore Capital commented: “With an active work programme underway and strong progress being made at Lesedi, we continue to see excellent scope for Tlou to become a leading Southern African-focused independent power producer.”

In afternoon trading, shares in Tlou Energy were 3% higher at 6.90p.

 -- Adds analyst comment, share price --

View full TLOU profile View Profile

Tlou Energy Ltd Timeline

Related Articles

oil rig
May 16 2019
Zubair Corporation will pay US$5mln in two tranches to develop Ntorya
May 07 2019
Output measured 602 barrels of oil per day in the quarter, compared to 607 bopd in the preceding three months.
oil rig
February 27 2019
Gross production might hit 45,000 barrels per day by end 2019

© Proactive Investors 2019

Proactive Investors Limited, trading as “Proactiveinvestors United Kingdom”, is Authorised and regulated by the Financial Conduct Authority.
Registered in England with Company Registration number 05639690. Group VAT registration number 872070825 FCA Registration number 559082. You can contact us here.

Market Indices, Commodities and Regulatory News Headlines copyright © Morningstar. Data delayed 15 minutes unless otherwise indicated. Terms of use