Botswana-focused coalbed methane (CBM) company, Tlou Energy, has achieved a range of milestones towards the delivered of a 10 MW gas-to-power pilot plant, according to the company’s latest six-month report. Highlights include the completion of an expanded drilling programme and dewatering at the company’s Lesedi CBM project, the start of gas flow testing and progressing with environmental permitting.
“It has been a very busy few months for the company with significant progress made at the Lesedi CBM project specifically, developing the gas field, progressing our environmental approvals and continuing negotiations with potential offtake partners,” said Gabaake Gabaake, Tlou’s Managing Director.
According to the Gabaake, the company is now “well positioned to achieve its planned near-term goals”, which include achieving sustained economic gas flows at Lesedi and obtaining independently certified gas reserves. These will allow the company to move from exploration and appraisal to development.
In order to help fund the next stage in the development of Lesedi, Tlou also successfully listed on London’s AIM, “opening up the company to the UK market, which has a strong appetite for African focused projects like Tlou’s,” Gabaake said. “This has set the foundation for further growth.”
“Tlou has a long-term vision to become a mid-tier energy provider in southern Africa,” said Nathan Mitchell, the company’s Chairman. “Our Lesedi project provides us with an ideal platform from which to commence this progress. Over the next 12 – 24 months, we will be making steps towards the successful commissioning of a 10 MW pilot plant at Lesedi. The project, once commissioned, will allow the company to generate revenue and importantly will demonstrate the commerciality of producing power from locally-produced CBM.”
The company announced a loss of AU$1.99 million, compared to a loss of AU$1.14 million the previous year, with a substantial portion of this expenditure resulting from Tlou’s admission onto the AIM. Net spend on exploration activities during the six month period was AU$4 million.
Edited by Jonathan Rowland.