Energy: Tlou says a new minerals minister & project finance is the perfect recipe for its Botswana project
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It’s been a long wait for Tlou Energy (ASX:TOU) shareholders but the company says the final ingredients for its Botswana project are coming together.
The company is developing a coal seam gas field to produce energy as the southern African country seeks to reduce reliance on imports.
Coal seam gas is a type of gas that’s found in coal beds. It’s typically extracted using unconventional methods such as pumping out underground water and lowering pressure, allowing gas to detach from the coal and flow out.
But it requires money and government approval and it has waited several months for the latter. Nonetheless, the company was pleased by initial gas flow rates.
Tlou also welcomed the appointment of a new minerals minister – Lefoko Maxwell. The company said it was “very glad” to see the appointment of a new minister and looked forward to working with him.
At the same time, the company is negotiating a funding package of up to $30m from the Botswana Development Corporation, and is also exploring other financing alternatives.
“Tlou recognises that progress has been slower than anticipated in recent times,” it said.
“However the company is reassured by the continued performance of the Lesedi 3 and 4 production pods which continues to build the business on very solid operational foundations.
“The Tlou project is consistent with the country’s objective of a Botswana which is energy secure, has diversified and cleaner energy sources and is a net energy exporter.”
Initial gas flow rates of 20,000 cubic feet per day (Mscfd) failed to stun shareholders. But Tlou said recent short-term rates were higher and the company was pleased with them. It is aiming for a minimum of 80-100 Mscfd from each production pod.
Shares are 52 per cent lower than April and were unchanged this morning.
Whitebark Energy (ASX:WBE) announced its Rex-3 well at Wizard Lake was successfully drilled to 3,673m on budget and one day ahead of schedule. It says initial indications show the reservoir is of excellent quality — better than Rex-2. Whitebark is now readying the well for fracking in the horizontal well within 10-14 days.
Aura Energy (ASX:AEE) will hold a shareholder meeting on January 6 after receiving a 249D notice from shareholder Pre-emptive Trading. However Aura is suing Pre-emptive for not taking up shares in February’s capital raise after it agreed to do so. Aura advised shareholders to vote down the proposal to oust director John Bennett.