Tlou in Funding Talks with Botswanan Firm on CBM Project
London-listed Tlou Energy is in talks with a "very reputable Botswana-based entity" for financing for the Lesedi coalbed methane (CBM) project in the south African country, it said on March 1.
"We already have a great relationship with this group and look forward to working closely with them to get the process concluded successfully and as soon as possible," Tlou's managing director Tony Gilby commented. "This is an outstanding project and with the right partners we believe it can be an overwhelming success both for Botswana and our shareholders."
Tlou said it was unable to name the entity due to confidentiality reasons, but said the entity was seeking a third-party technical review of the Lesedi project as part of its due diligence process. After this report is assessed an investment decision can be taken.
Tlou has development rights to 8,300-km2 of acreage in Botswana which it estimates could contain 90.6bn m3 of gas trapped in coalbeds. It wants to develop this resource and use it to generate power. The project is to be developed in two phases costing $30mn.
The first $10mn phase involves the construction of a 100-km transmission line, sub-stations, grid connections and up to 2 MW of electricity generators, as well as the potential drilling of additional gas wells. The second, $20mn phase will expand generation capacity to 10 MW.