Tlou Energy Limited (LON:TLOU) has hailed a “highly active” year as it delivered its results following its selection as a preferred bidder to develop a coal bed methane (CBM) power plant in Botswana.
The AIM-listed firm said its selection by the Botswana government had been a “key target” over the year and that it would now begin negotiations with the government for a power purchase agreement before starting development work.
WATCH: Further gas flow rate upgrades expected from Tlou Energy
Tlou also said it had completed a work programme to drill two dual lateral development wells at its Lesedi CBM project adjacent to a proposed power generation facility, both of which were now producing gas.
The company added that with approval also secured for its planned downstream developments, all environmental approvals were in place to begin commercial development.
Tony Gilby, Tlou’s managing director, said that looking ahead, shareholders could expect further gas flow rate upgrades from the two new wells as well as an anticipated gas reserve upgrade and the agreement of a development financing package.
For the 12 months ended 30 June, Tlou a loss of US$3.2mln compared to US$2.8mln in 2018, while it ended the year with a cash balance of US$5.2mln.
In early trading on Tuesday, Tlou’s shares were 4.4% higher at 4.8p.