Tlou raises A$3mn for Botswana gas power project
Australia’s Tlou Energy has raised A$3mn ($2mn) via a share placement to fund Lesedi gas-to-power project in Botswana, it said on November 11.
The energy company has issued 85.7mn new ordinary shares to an entity controlled by Sydney-based investor Ian Campbell. It takes the entity's holding to 19.23%.
Campbell has said that he intends to remain a long-term strategic investor and could provide further financial support to Tlou, the company said.
“Further funding could fast-track project development including the anticipated high-impact drilling campaign scheduled for 2023,” Tlou said. “The drilling campaign aims to produce further gas for electricity generation under the power purchase agreement with Botswana Power Corporation.”
Recently, Tlou said it had almost completed line surveying to build a 66-kV cable connecting its Botswana coalbed methane (CBM) assets to the proposed Lesedi gas-fired power project.
Line surveying is 96% complete along the route of the 66kV cable, the company said in September, which is anticipated to supply up to 25 MW of power to the forthcoming Lesedi power plant, from Tlou’s two Botswanan CBM wells. A construction tender for the cable build was awarded by Tlou on March 15 to local engineering firm Zismo Engineering.