Tlou Energy Limited (LON:TLOU) has picked up a new prospecting licence in Botswana in the same trend as its existing Lesedi coal bed methane project.
The Boomslang licence covers 1,000sq km and takes the company’s total acreage in the area to 9,300 sq km and runs for an initial term of 3 years.
Tlou recently completed two development pods – each containing three wells - at the flagship Lesedi project, involving de-watering prior to controlled gas flows.
'House' broker SP Angel says Boomslang is a highly complementary addition to Tlou’s asset base in Botswana, which brings further critical mass to the portfolio.
The broker’s fair value estimate for Tlou is approximately 25p/share underpinned by an active work programme underway and progress made with initial development operations at Lesedi.
In afternoon trading, shares in Tlou were 1.7% higher at 5.85p.
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