CBM Explorer Tlou Energy Reports Bigger First Half Loss

Africa focused coal bed methane (CBM) explorer, Tlou Energy, has reported an increase in loss for the six months that ended on December 31.

The loss for the half‐year amounted to A$1.9 million compared with a loss of A$1.14 million in the six months to December 2014. “A substantial portion of the loss results from expenditure incurred in relation to the company’s admission to trading on the AIM Market. Excluding this amount, the expenditure was in line with projections,” the Australia and UK listed company said in a statement published Friday.

Tlou said it has made significant progress on its downstream plans for the development of gas-to-power projects in Botswana. During the period, the company has had discussions with a number of power development, investor and lender groups with a strong appetite for African based energy projects. “There is considerable interest from these groups to partner with Tlou to initially develop a 10 MW gas-to-power project in Botswana and thereafter, further expand to cover the chronic energy supply shortfalls being experienced in Botswana and throughout southern Africa.”

Discussions with potential off‐takers to purchase the power is on‐going and the company plans to sign a Power Purchase Agreement in the near term. Following successful implementation of the 10MW pilot project Tlou plans larger projects to provide further power to Botswana and the southern African region.

Tlou’s CBM project in Botswana flared its first gas in 2014.  It holds 10 prospecting licences covering an area of about 8,300 sq. km and the Lesedi project has certified contingent resources of approximately 3.3 trillion cubic feet (tcf).  Following completion of the current gas flow tests at Selemo the company is looking to book certified gas reserves, thereby becoming the first company in Botswana to do so.