Sydney-listed Tlou Energy plans to undertake an equity placement of £2.6mn (US$3.6mn), it said on March 16. The placing will be conducted through a bookbuild process. 

The funds raised will be mainly used by Tlou to construct a 66kV transmission line from its Lesedi coalbed methane-to-power project in Botswana to the existing electricity grid at Serowe, and for field operating costs and ancillary equipment.  

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The company said it plans to start work as soon as possible on the transmission line following the award of tenders for the construction of overhead transmission lines and sub-stations. The environmental and social impact assessment for the line has been completed as well as route alignment and associated surveys. 

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. 

Tlou has also been working with a number of parties to secure funding for the Lesedi project. The company is in talks with a "very reputable Botswana-based entity" for financing for the project, it said earlier this month.