Tlou Finalises On Power Purchases Agreement
Pauline Dikuelo | Monday November 4, 2019 10:29
Addressing stakeholders recently, Tlou Energy managing director Tony Gilby said:
“We have completed the drilling and gas extraction, and once the PPA is done, we would be able to supply Botswana Power Corporation with 100MW of electricity by next year,” he said.
Once operational, Gilby said, the project would provide scalable template for growth across portfolios.
Gilby said they have independently certified gas reserves, and have been granted a mining licence.
According to the MD, the Environmental Impact Assessment for the downstream development of the power generation facility and transmission lines has been approved.
The Botswana Stock Exchange-listed energy company earlier this year recommenced a production pod drilling at the company’s Lesedi CBM (coal bed methane) project.
This follows the company’s successful drilling of the vertical wells and the top-hole sections for the new production pods at the Botswana-based project.
Following the completion of lateral wells at Lesedi 3A and 3B, as well as Lesedi 4A and 4B, the production pods will be completed using a separate work-over rig ahead of installation of surface production facilities including water evaporation ponds.
In April, Botswana Public Officers Pensioners Fund (BPOPF) also increased its stake in Tlou Energy Limited to 10.4%, snapping up P21 million worth of additional shares in the upcoming natural gas developer.
The increased investment is a vote of confidence for Tlou, which is a front-runner in government’s pending contract for the construction of a 100-megawatt Coal Bed Methane power station.
The BPOPF, which is the country’s largest pension fund with approximately P60 billion in assets, previously held a 4.6 percent stake in Tlou.
The pension fund snapped up 28 million of the 29 million made available via a private placement at P0.75 million per share.
The balance of shares was bought by an unnamed pension fund making its first investment in Tlou.
The proceeds of the placement, along with existing cash, was intended to provide further working capital for ongoing activities including exploration and downstream development work and continued gas flow testing at the recently completed production wells.