Tlou Secures Maiden Botswana CBM Licence
Tlou Energy has converted its prospective licence in Lesedi, Botswana, into a mining licence in readiness for commercial coalbed methane (CBM) production, the UK-listed independent said August 21. CEO Tony Gilby said it was the first application of its kind to be lodged in Botswana and it further de-risks the project.
It will be the first commercial gas-to-power project in the country and use indigenous gas will make the power output competitive. Gilby said: "The issue of a mining licence will pioneer the development of a new and exciting natural CBM gas industry in Botswana, an industry that will lead to a new indigenous source of energy, income and employment for the country
Two major components of a mining licence application are an approved environmental impact assessment, which was granted in September 2016, and a feasibility study for the relevant project. Tlou will make a further announcement containing material terms of the licence, once it has received the licence itself, something it expects to do by the end of this week.
The award reflects the progress Tlou has made over the past few years including sustained commercial gas flows at Lesedi project over the past 12 months; attaining the first CBM reserves in Botswana in 2016 and expanding these reserves in 2017; and acquiring environmental approval for upstream project development at Lesedi.
Tlou is planning to lodge its proposal for a 100-MW power plant this week, ahead of the government tender's closing date of August 23. The planned submission will outline a scalable CBM gas-to-power project, so that Tlou can sell power into the grid sooner and create revenue for later phases.
Tlou has also successfully applied for the renewal of the Mamba CBM prospecting licences in Botswana. Covering about 4,500 km², they border on Lesedi and are on-trend with the encouraging results observed to date. "In the event of a gas field development by Tlou, the Mamba area provides the company with considerable flexibility and optionality," Tlou said.
The extension was granted for three months while the ministry completes its review of Tlou's renewal application for a further period of two years.
William Powell