Tlou Energy targets to have its first power sales in 2019 from the Lesedi Coal Bed Methane (CBM) project that has enough resources to produce 100MW of power over a 30-year period.
Speaking at the company’s listing on the Botswana Stock Exchange (BSE) this week, executive director, Gabaake Gabaake said the Lesedi project has independently certified gas reserves of 261 billion cubic feet (3P).
The company has the most advanced CBM project in Botswana, and intends to use the P33 million raised from African Alliance Botswana in the listing to advance the project.
“We are the only company in the region, which has independently certified gas reserves onshore. We are still at the beginning of certifying gas reserves because there is market for gas both direct and indirect within this region.
“We are going to use the money that we raised from listing to complete the current seismic survey data interpretation and core hole appraisal programme. These are basically core holes drilled along selected points on the seismic lines to confirm seismic results and target coal seam properties such as gas content, permeability and other properties,” he said.
Tlou Energy raised P33 million at a subscription price of P1.56 from listing, which would also be used to commence the first phase of development drilling at the Lesedi project as well as fund the costs for the BSE listing and share subscription. Gabaake said currently drilling is ongoing and an Environmental Impact Assessment (EIA) for the gas field
Gabaake added they have developed and put together a comprehensive and quality plan, which provides a clear pathway towards 100MW of cleaner power for Botswana at a very competitive price compared to coal into the Botswana Power Corporation (BPC) grid by 2019. They have been generating power from this gas on site and using it to drive pumps in the gas wells, which has been done without any processing of the gas. “We believe we are on the verge of developing a new industry for Botswana, which will have a multiplier effect on the economy. Gas does not only offer a much cleaner and flexible fuel for power generation, compressed natural gas has the potential to replace all LPG imports, provide feedstock for various products, which include liquid fuels, fertilisers and many other products.
Tlou has been producing gas at Selemo and is optimistic that by using gas at its project will reduce the company’s spending on diesel by about 50,000 litres per annum. The company was established in 2009 as a special purpose vehicle to develop CBM in Botswana.