8th May 2023
Tlou Energy, an exploration company focused on delivering clean energy, continues to raise funds to build infrastructure that will connect their most advanced power project to the existing electricity grid.
This week, the Australian Securities Exchange, London’s AIM market and the Botswana Stock Exchange-listed company announced that ILC Investments has provided a A$2 million (P17.7 million) loan to the company as part of their continued support of Tlou’s projects. The loan has a three-year term commencing this month, and interest will be charged at 1% per annum, payable each quarter.
“Tlou will draw down the loan in full from the date of the agreement. Funds are planned to be used to further Tlou’s operations in Botswana and working capital requirements.
Tlou will also continue its efforts to source further capital to advance its projects and will update the market in due course,” said Anthony Gilby, Tlou’s managing director.
ILC is already Tlou’s largest shareholder having provided A$7.5 million (P66.5 million) in capital via previous share placements. The entity, controlled by Dr. Ian Campbell, a high net worth investor based in Sydney, last November invested A$5 million (P44.3 million) and agreed to subscribe for 71.4 million new shares at a cost of A$2.5 million (P22.2 million).
At the end of the first quarter of 2023, Tlou had approximately A$3.5 million (P31 million) cash on hand, with further plans to raising more capital. The company has three key project areas referred to as: Lesedi project – focused on the development of gas to power development as well as exploration and evaluation, Mamba project – focused on exploration and evaluation, and Boomslang project – focused on exploration and evaluation.
The Lesedi gas-to-power project is Tlou Energy’s most advanced project, with four prospecting licenses and a production licence. The project area has independently certified gas reserves and contingent resources, with the Lesedi 4 production pod continuing to produce gas. A key focus in the coming year is to drill more production wells for the 10MW project.
Tlou Energy’s initial 10MW Power Purchase Agreement (PPA) is part of a 100MW Request for Proposal for the development of CBM power projects in Botswana. The Lesedi project is approximately 100km from the nearest BPC substation connection in Serowe. In efforts to connect onto the national grid, the company is undergoing the construction and installation of a 100km 66kV transmission line.
In late April, the company began drilling the Lesedi 6 production pod, planned to be the first of a series of new pods that the company will drill as part of the gas to power project. Lesedi 6 will comprise one vertical production well intersected by two lateral wells drilled horizontally through the target reservoir section for several hundred metres.
“This, together with the ongoing drilling programme can enable the company to connect and provide electricity into Botswana’s power network. The construction of the 66kV transmission line is being carried out by Zismo Engineering and is expected to be completed around mid-2023,” said Gilby.
By end of March, progress was estimated at approximately 64%, with the planting of wooden poles almost complete, steel pole structures being erected and over 20km of line stringing complete. Construction of substations is scheduled to begin very soon with the project anticipated to be completed in early 2024. Substations are required at either end of the transmission line, one to tie Tlou’s generators to the transmission line at Lesedi and another to integrate the line with the existing BPC substation at Serowe.
Source: https://www.sundaystandard.info/tlou-energy-gets-p18-million-loan-as-production-heats-up/
