Australia

Tlou Energy builds on position in Botswana ahead of key results at Lesedi

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  • Tlou Energy 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.
  • Tlous projects are 100% owned and operated in an area that has a huge regional power demand.

What it owns

The Lesedi project is one of three projects Tlou Energy Limited (LON: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 companys 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.

Watch the interview

Inflection points

  • Increasing Gas flow results from Lesedi 3P and 4P
  • Finalisation of Power Purchase Agreement with the Botswana Government
  • Additional CBM reserves booked in Tlous projects

What the broker says: Shore Capital

Shore Capital sees the signing of a power purchase agreement (PPA) for its Lesedi project in Botswana as a catalyst for funding and a re-rating of Tlou.

Tlou hopes to finalise both the PPA and development financing as soon as possible, with first electricity sales targeted towards the end of next year.

Read More – Source