Tlou Energy Ltd (AIM:TLOU, ASX:TOU, BSE:TLOU) said it has a cash position of AUD$5.9mln (£3.3mln) as it announced that its Botswana projects are continuing to progress.
Design and surveying for a gas fired power facility at the Lesedi project is complete, with the plant set to produce 10MW which will be sold to Botswana’s national power company once built, generating an estimated US$10mln (£8.66mln) in annual revenue, the company said in an update on its third-quarter operations.
Tlou highlighted that the transmission line, due to connect the plant to the power grid, is still under construction, with the project due to be completed in the second half of 2023, upon which the sale of electricity can start.
The company said gas production continued at the Lesedi 4 well in the third quarter. However, it decided to shut in the Lesedi 3 well as it has sufficient data from the well, so there is no need to incur further production costs. The well can be brought back into production as required, it noted.
Tlou also updated on two other programmes, saying its Mamba project is still in the exploration phase, whilst preliminary work on the Boomslang project is yet to begin.