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Tlou Energu looking for stability at Lesedi coal bed methane project

Gas and water are being produced at the Lesedi 3 and 4 production pods

Tlou Energy Limited -

Tlou Energy Limited (LON:TLOU) says rates of production from its Lesedi coal bed methane project in Botswana remain variable with gas flow rates fluctuating up and down.

Gas and water are being produced at the Lesedi 3 and 4 production pods, but having started at 20 Mscf (thousand standard cubic feet gas per day)  attempts to stabilise production at a higher rate of 80-100Mscf from each pod have been hampered by the changing flow rates.

WATCH: New PPA and funding update from Tlou in Botswana

Water extraction is also slowing the process though Tlou said it still has no reason to think it won't meet the higher target.

The company added it has submitted a request for an interim power purchase agreement to speed up the permitting process in Botswana, while it has received a non-binding proposal from the Botswana Development Corporation (BDC) to fund the first 10Mw of the project.

Other financing options are debt, equity and mezzanine finance. 

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Price: 2 GBX

AIM:TLOU
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Market Cap: £10.27 m
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