(Sharecast News) - Tlou Energy updated the market on the Lesedi project on Friday, reporting significant progress towards electricity generation.
The AIM-traded firm said the Lesedi 4P and 6P production wells continued to exhibit promising results as gas flaring persisted, alongside ongoing dewatering efforts.
It anticipated increased gas extraction efficiency in the future, benefiting from economies of scale and enhanced operational knowledge gained from recent drilling activities.
A crucial development was the completion of a 66kV transmission line, linking Tlou's Lesedi project directly to Botswana's power grid and the broader Southern African Power Pool.
The connection to the Serowe substation effectively integrated the Lesedi project into Botswana's primary electricity market, ending its isolation and opening avenues for broader energy distribution.
Tlou said the Lesedi substation, vital for linking its power generators to the transmission line, was about 38% complete.
Progress included the installation of the earth mat, with construction underway for the control room.
At the same time, Tlou said it was evaluating options for gas-fired generators to be installed adjacent to the Lesedi substation on the company's wholly-owned land.
Consultant engineers were actively engaging with suppliers to obtain competitive quotes for the generators.
Regarding funding, Tlou said it was currently engaged in discussions with strategic partners to secure the remaining funds necessary for project completion.
The company was aiming to finalise funding arrangements within the current quarter.
Despite funding considerations, Tlou said it remained steadfast in its commitment to delivering electricity into the grid promptly, leveraging its existing 10MW power purchase agreement with Botswana Power Corporation.
At 1133 GMT, shares in Tlou Energy were down 9.68% at 1.4p.
Reporting by Josh White for Sharecast.com.
Tlou Energy (TLOU)