LONDON (Alliance News) - Power supplier Tlou Energy Ltd on Tuesday said it is awaiting results of a tender for an initial 10 megawatt coalbed methane pilot project within the Botswana government's 100 megawatt supply plans.
Tlou said the government of Botswana has proposed that the delivery of 100 megawatts of coalbed methane power be incorporated into its future generation supply plans, and that Tlou is awaiting results of a tender for a pilot project.
Tlou said its Lesedi project is strongly positioned to benefit from the programme, which fits with the company's plans to build gas-to-power projects in Botswana. If its application is successful, Tlou said it will allow the company to fast track the development of Lesedi and the Mamba project.
"As the most advanced CBM project in the country, we are extremely well placed to become a major supplier of this power. Therefore a firm decision in respect to the government's plans to include 100 MW of CBM generated power in its power production programme could be transformational for Tlou and its shareholders," Acting Managing Director Gabaake Gabaake said in a statement.
"Given this news, our plan to initially develop a 10 MW project is now even more tangible and the potential for being granted not only an offtake for our gas but to generate revenues by supplying much needed power to the national grid provides even more encouragement that our project will be a success. There is also a possibility that Tlou will be granted approval for a project larger than 10 MW," Gabaake added.
Tlou added that further de-watering of the main well and shielding wells as part of gas flow testing at Lesedi has provided encouraging results.
Shares in Tlou were trading up 3.9% at 4.16 pence in London on Tuesday morning.
By Karolina Kaminska; karolinakaminska@alliancenews.com @KarolinaAllNews
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Tlou Energy (TLOU)