21 June 2023
Tlou Energy, the tri-listed gas-to-power developer published a supplementary regarding the share offer to raise P92.6 million or A$ 10.65 million expected to drive extraction of its large deposit of gas at Lesedi project.
Daniel Slater, an Alternative Energy, Oil and Gas analyst at Zeus Capital in the United Kingdom analyst said: “The Company holds net 2P reserves (proven reserves plus probable reserves) and an additional net 2C resource (the best estimate of contingent resource) of 35.7 million barrels of oil equivalent.”
The outfit has placed a non-renounceable share offer to eligible shareholders of four new shares for every 11 shares held at May 18, 2023. All in all, 304,156, 361 shares are on offer. And A$ 5 million shares have already been underwritten by its major shareholder ILC Investment PTY Ltd. The proceeds are to be ploughed into drilling of wells, transmission lines, substation construction, purchase of land and operations and generation facility.
The company is drilling in the western Sandveld to resolve the power blackouts both in Botswana and the southern African region. Tlou Energy is on Australian Stock Exchange, AIM, in United Kingdom and the Botswana Stock Exchange.
Last week, it said its 100 kilometres transmission line to connect the Lesedi project to Botswana Power Corporation (BPC) national grid in Serowe was about 73% complete. It also stated that drilling is progressing well.
Tlou Energy is developing a purpose built operation facility for 10 MW gas-to-power project and has concluded a Power Purchase Agreement with the national power utility. The company is planning to expand its capacity to 25 MW funds permitting.
He said : “Overall, the first electricity sales are expected in Q2, 2024. We are pleased to see the pursuit of further funding by Tlou, and the ongoing strong support by major shareholders.”
Tlou also got a lot of support from Botswana Public Officers Pension Fund (BPOPF), both in equity and debt. BPOPF has assets under its management valued at P90 billion.
