LONDON (Alliance News) - Tlou Energy Ltd on Tuesday said it reached significant milestones in the final quarter of 2016 as it edges closer toward delivering a coalbed methane power project in Botswana.
The company was the first to secure independently certified CBM reserves in Botswana and the government sent a request for proposal to the company asking for proposals concerning the development of a CBM power plant with capacity of up to 100 megawatts.
A co-operation agreement signed with General Electric International Inc and IK Holdings Pty Ltd covering infrastructure sharing was also extended to support the project development schedule. A "specialist African based firm" was also engaged to recommend the design and installation of the transmission lines needed to connect the project to the local power grid.
The Lesedi CBM project consists of five prospecting licenses with focus particularly on PL 002/2004, where extensive exploration and evaluation work has been completed.
At the end of 2016, Tlou said it remained debt free with AUD2.4 million in cash.
In the three months to the end of 2016, Tlou reported a net cash outflow from operating activities of AUD1.1 million, taking the outflow in the last six months to AUD2 million. Investing activity generated minor net outflow in the most recent quarter and in the first half, while financing activity generated net cash of AUD254,000 in the quarter and AUD3.2 million in the six month period.
For the quarter to the end of March, Tlou forecasts cash outflows totalling AUD941,000, comprised of AUD439,000 from exploration and evaluation, AUD268,000 from staff costs and AUD234,000 from administrative costs.
Tlou shares were trading up 3.7% to 6.35 pence per share on Tuesday morning.
By Joshua Warner; joshuawarner@alliancenews.com; @JoshAlliance
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Tlou Energy (TLOU)