Tlou Energy Limited, the ASX, AIM and BSE-listed company focused on developing gas-to-power projects in southern Africa using coalbed methane (CBM) natural gas from its gas field in Botswana, received a query from the ASX regarding the company's Appendix 5B for the period ended 31 December 2018.
The company confirmed that it expects to have negative operating cash flows for the coming periods as the company is engaged in gas exploration and early stage development. The company also confirmed it is in discussions with external parties that are considering investing in the company either through equity or the provision of debt facilities. These discussions are at an advanced stage and the company believes that there is a significant likelihood that this investment will be successfully completed in the near-term.
Tlou expects to be able to continue its operations and meet its objectives. Operating cash flows have been higher during 4Q18 and 1Q19 due to the ongoing drilling programme being undertaken by the company. This work programme will be completed in 1Q19, and thereafter operating cash flows will be significantly reduced.
Read the article online at: https://www.worldcoal.com/cbm/08022019/tlou-energy-addresses-asx-query-issues-response/