Wednesday, May 25, 2022

Tlou Energy eyes AIM dual listing to raise funds for Botswana projects

Tlou Energy, the Southern Africa focused natural gas explorer has told its shareholders that it is investigating the possibility of a dual listing on the AIM Market of the London Stock Exchange (AIM) as it looks to increase its funding pool. 


The company said it will make a final decision on the idea together with its UK advisors in the coming months.


“As recently flagged in the Company’s 30 June 2015 Quarterly Report, Tlou has engaged key market participants in the UK to investigate a dual listing by the Company on the AIM Market of the London Stock Exchange (“AIM”),” the company’s Managing Director Anthony (Tony) Gilby said. 


Tlou’s principle assets are in Botswana, where it has one of the most advanced CBM projects in southern Africa. Tlou’s 100% owned Lesedi CBM project has an independently certified contingent resource of up to 2.3 trillion cubic feet (TCF) (3C) with a further prospective resource totalling 8.6 TCF (High Estimate). Tlou is aiming to have certified gas reserves in the near future.


Botswana and other southern African countries are currently experiencing electricity supply deficits. Tlou believes the electricity market represents an attractive commercialisation path for the company’s CBM.

With the AIM dual listing the company will be looking to tap into a larger fund in Europe to develop the gas project in Botswana. 


“Tlou has a growing number of UK and European shareholders, representing approximately 20% of Tlou’s issued capital, and also believes there is a deeper pool of capital available in London to support the development of African focused resources opportunities, such as Tlou’s Lesedi CBM Project in Botswana,” Gilby added. 


Gilby said recently that the company he heads continues to advance the negotiations for gas sales agreements which are a precursor for reserve certification.


“This will serve to underpin Tlou Energy’s planned field development objectives at the Lesedi CBM Project in Botswana with the objective to supply gas to commercial end users and for power generation,” he added as part of the Australia Securities Exchange (ASX) filing, where it is listed.


Tlou has shown intentions to initially focus on smallÔÇÉscale pilot projects of up to 10MW’s of power generation, with first gas sales targeted to commence in 2016.


It is anticipated that once established, these pilot projects will lead to larger scale developments, including the conversion of the existing 90 MW Orapa Power Station from diesel to gas, a greenfield 300MW gas fired power station and gas fired power projects for export of electricity into the SAPP.


The diesel powered Orapa 90 MW plants is one of the contingency projects where the state owned utility loses millions of Pula every year. The company will look to have a pipeline to Orapa and another one to fuel the potential 300MW plant in Gaborone and Mahalapye.


Botswana is currently in need of power as the project that was supposed to alleviate the need; the Morupule B Power Station has since failed to fill that gap. The coal powered plant will only be fully operational by 2019ÔÇöwhich will be 7 years behind schedule. 


Read this week's paper