Skip to main content

Tlou Energy to invest £3.1m in coal bed methane projects

Published by
World Coal,


Tlou Energy Limited, the AIM and ASX listed company focused on delivering power in Botswana and Southern Africa through the development of coal bed methane (CBM) projects, has announced the successful completion of a A$5.2 million (approximately £3.1 million) placement of new ordinary shares (‘Placement’).

 

 The Placement comprises the issue of 51,788,334 new ordinary shares (representing 17.9% of enlarged  share capital) at an issue price of A$0.10 or £0.06 per share to sophisticated and professional investors  in Australia and the United Kingdom.  The Placement shares will rank equally with Tlou’s existing shares  on issue.

 The proceeds of the Placement, along with existing cash, will be applied by Tlou for the following: 

 
  • Acquisition and interpretation of new 2D seismic data in areas considered to be highly prospective  for additional Reserves by Tlou’s reserve certifiers;   drilling  a  limited  number  of  vertical  (cored)  wells  along  the  new  seismic  lines  (with  geophysical.
  •  
  • Logging and coal core gas sampling) to a depth of approximately 500 m.
  •   
  • Completing various studies (upstream and downstream) required for the submission of the mining licence application and tender for the Botswana Government’s 100 MW CBM pilot project.
  •   
  • on-going production  testing at Selemo, including installing gas engines  to  run  the pumps  on  the  existing wells.
  • Costs of the Placement; and   working capital for its Lesedi CBM Project and corporate costs.

The  objective  of  the  work  programme  above  is  to  expand  the  Company’s  independently  certified  gas  Reserves and complete the licensing requirements prior to commencing development of the Lesedi CBM  Project.

 

Read the article online at: https://www.worldcoal.com/exploration-and-development/27032017/tlou-energy-to-invest-31m-in-coal-bed-methane-projects/


 

Embed article link: (copy the HTML code below):