Tlou Energy Makes Progress At Lesedi 4P Project
Pauline Dikuelo | Monday January 18, 2021 15:40
In an update, the Botswana Stock Exchange-listed company’s managing director, Anthony Gilby said the Lesedi 4P gas rate has shown a steady increase over time while water rates are progressively decreasing.
“The continuous nature of the gas flow throughout the year with the steady incline being observed is very encouraging. Gas flow rates are not anticipated to increase significantly until further drilling is carried out to assist with dewatering of the reservoir,” Gilby said.
“Once further water can be removed from the system by additional wells, the gas should start to increase substantially.”
Gilby added the continuous gas flow reinforces the significant upside potential for shareholders and along with Tlou's plans for solar power, could create a new cleaner power opportunity for the region.
“Only the deeper gas target horizon Morupule coal seam has been explored to date with at least one other shallower potentially productive zone Serowe coal seam yet to be evaluated,” he said.
Tlou is developing a ‘scalable’ power project and the company last year entered into an agreement with Botswana Power Corporation (BPC) to pilot a 2MW plant at Lesedi. Under the deal, power produced will be sold to BPC at an approved state-owned power utility’s tariff as well as series of standard conditions.
This project is expected to lead Botswana into a new era of clean energy production by tapping into billions of cubic feet in resources of unconventional gas.
Last year Tlou Energy raised P24 million through a share offer designed to advance Lesedi project. In a statement to investors then, Gilby said the partially underwritten share offer of 75 million shares had raised P22 million out of the P24 million targeted. The directors said the proceeds of the offer would go towards engineering and design of a transmission line, due diligence costs related to development funding, field operations and working capital at Lesedi.
Tlou Energy is focused on generating cleaner power in Botswana for supply into the local and regional power markets. The company boasts independently certified gas reserves of about 41 billion cubic feet at its licences in central Botswana.