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LONDON (Alliance News) - Tlou Energy Ltd on Thursday said its loss narrowed in the first half of 2018 as it achieved its key project targets in Botswana.
The natural gas company said its pretax loss narrowed in the year to the end of June to USD2.8 million from USD3.2 million reported a year earlier, as it recorded a USD194,706 gain on foreign exchange rates.
Depreciation & amortisation costs declined slightly to USD204,788 from USD240,961 the year before, while performance rights expenses fell to USD199,624 from USD423,499.
During the financial year, the company said it secured a mining licence over the Lesedi project area from Botswana's Department of Mines in the Ministry of Mineral Resources, Green Technology & Energy Security.
The licence grants the holder the right to produce coal-bed methane natural gas in the approved mining licence area for a term of 25 years starting in August last year and ending in August 2042.
Tlou said it hired Australian seismic acquisition & processing company Velseis Pty Ltd to conclude a seismic survey over 250 kilometres area of its Lesedi and Mamba projects.
The company said it identified potential gas reservoir compartments outside areas that had already been mapped.
Tlou said it conducted a core-hole drilling programme following the seismic survey. Two new core-holes were completed in the Lesedi project area and one in the Mamba project.
Following coring, desorption samples were taken and placed into desorption baths in the field with readings being taken and sent to Weatherford laboratories in Brisbane, Australia.
"This has been a very productive year for the company, with key targets achieved that have further de-risked the project," said Managing Director Tony Gilby.
"We look forward to building on our success to-date to deliver a project that can bring vital energy security and employment to Botswana and has the potential to provide an excellent return for our supportive shareholders," added Gilby.
Shares in Tlou were trading 3.0% lower on Thursday at 6.45 pence each.