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(Alliance News) - Tlou Energy Ltd on Tuesday said loss widened in its recent financial year due as it works to develop the Lesedi coal bed methane project in Botswana.
Shares in Tlou were up 4.1% at 7.75 pence in London in morning trade.
Tlou posted an AUD3.2 million, or USD2.2 million, pretax loss for its year ended June 30. This is wider than the AUD2.8 million pretax loss the year before.
Tlou's depreciation expense more than doubled to AUD555,675 from AUD204,788. Performance rights expense was also higher, at AUD377,305 versus AUD199,624.
Interest income for the financial year was AUD6,933, having been AUD883 the year before.
Chair Martin McIver said: "This has been a highly active year for Tlou, following confirmation the company has been chosen as a preferred bidder for the development of the one of the first commercial [coal bed methane] gas-to-power projects in Botswana, approval of the required environmental impact statement and the successful drilling of two dual lateral development wells. We look forward to another successful year ahead.
"With CBM development not previously established in Botswana, Tlou is pioneering CBM development in the region."
On Thursday last week, Tlou announced sustained gas flow rates have been achieved at the Lesedi 3 and Lesedi 4 production pods.
Managing Director Anthony Gilby said: "If everything goes according to plan, shareholders can look forward to further gas flow rate updates from Lesedi 3 & 4, drilling at the Mamba project area, finalisation of the [power purchase agreement], agreement of a development financing package potentially from Botswana based investors or debt financiers, seismic acquisition, an anticipated gas reserve upgrade and commencement of the downstream power generation development."
The company's annual general meeting will be held on October 17 in Brisbane, Australia.