- The funds will be targeted towards drilling gas production wells and constructing transmission lines and substations to connect the Lesedi project to the electricity grid.
- Tlou said operations are continuing in Botswana. Gas continues to be produced at the Lesedi 4 production pod.
Tlou Energy Ltd plans to raise around £5.86mln to develop its power projects further. The funds will be targeted towards drilling gas production wells, constructing transmission lines and substations to connect the Lesedi project to the electricity grid, land purchase and structure of an operations and generation facility, and general working capital requirements.
The fundraising will be by way of an entitlement offer for four new shares for every 11 shares held, at a price of A$0.035 per share (around £0.02) and is partially underwritten for £2.75mln by ILC Investments Pty Ltd. Directors at the ASX, AIM and BSE-listed companies focused on generating power in Botswana are participating in the offer with commitments in place for a minimum of A$392,760.
Tlou said operations are continuing in Botswana, gas continues to be produced at the Lesedi 4 production pod, and drilling of the next production well, Lesedi 6, commenced in April 2023. The objective is to increase the volume of gas available to the company for power generation. Once Lesedi 6 is drilled and completed, dewatering will commence, and after that, the well should establish an indicative gas flow rate.
Lesedi 6 is the first well of a proposed drilling program to expand gas production at the Lesedi power project. Gas flows from Lesedi 6 will be converted to electricity under a 10MW Power Purchase Agreement once the transmission line, substations and associated electrical infrastructure are in place. Construction of the 100km transmission lines is well advanced and scheduled to be completed in the coming months. In comparison, work has commenced on the electrical substations to be built at either end of the 100km line and is expected to be completed early in 2024.
Source: Proactive Group