Australia and London-listed Tlou Energy Limited (ASX:TOU, LON:TLOU) is continuing negotiations with potential off-take partners for its Lesedi CBM (coal bed methane) project in Botswana, it told investors posting latest half year results.
The period charted considerable progress, with plenty more to come as the firm advances its flagship project in Botswana AIMing to deliver a 10MW gas-to-power pilot plant.
The plan is to exploit upwards of 3,000bn cubic feet (bcf) of contingent gas resources contained in coal beds, a couple of hundred kilometres from the capital Gaborone. The firm, if it does so, will be the first to book reserves in the country.
Managing director Gabaake Gabaake told investors on Friday:
"The company is well positioned to achieve its planned near term goals; achieving sustained economic gas flows at the Lesedi project; obtaining independently certified gas reserves and moving the project from exploration and appraisal to development phase.
"Listing on AIM was a significant achievement, opening up the company to the UK market which has a strong appetite for African focused projects like Tlou's.
"This has set the foundation for further growth and I look forward to reporting our positive progress to both our Australian and UK investors alike."
In keeping with a firm at this stage the loss before tax for the six months to December 31 was around A$1.9mln compared to a loss of A$1.14mln in the same period of 2014. The firm had cash of A$2.9mln at the end of the year (2014: A$5.8mln).
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