Tlou Energy Ltd has provided an update on progress at the Lesedi CBM Project located in prospecting licence PL002/2004 in Botswana.
The highlights include:
- First gas monetisation planned – gas produced by the Company will power the Project following completion of upgrades leading to ongoing cost savings.
- Actively planning forthcoming field development programme:
- SRK Consulting engaged to assist in recommendation of target development areas for the Project and further exploration.
- Flow testing at the Selemo wells is progressing well; providing vital data ahead of full field development and will be incorporated into Lesedi’s Feasibility Study.
- Detailed activities being advanced relating to the phased development of a CBM to power project (10MW ramping up to 50MW), to commence following field development:
- Working with specialist engineers on a Field Development Plan. Initial project plan is expected to be completed by the end of the year. This will also provide data ahead of a future mining licence application.
- Advancing a study of power grid integration points and transmission line options (midstream development).
- Downstream development relating to the planning, design, and development of the power generation units is progressing alongside specialist partners.
- Terms to be discussed with the Government of Botswana in relation to an off-take agreement for the approved 50MW power project.
- Assessing various funding options, having been contacted by a range of parties, for the development of the Project.
Executive Director, Gabaake Gabaake, said: “This is an extremely exciting time for the Company. The Board and management are very busy as the Company focuses on getting the initial 10-50MW project up and running. As investors can see, there are a considerable number of parts to bring together to develop the project as we aim to get our first power to market and start generating revenue. In the near term we will be providing an update on our field development program, and our studies for the development of our scalable CBM to power plant, which are being advanced alongside specialist partners. In addition, we will keep the market up to date on progress of other items including the offtake agreement, conversion of the field operations to run on CBM and a future mining licence application.
“We are incredibly grateful to our shareholders, many of whom have been with us since 2009, for their strong support. We also benefit from the backing of the Government of Botswana and, as highlighted today, a range of potential funding partners. Our objective is to bring the Project to fruition as soon as possible to unlock the best possible value for our shareholders.”