Coalbed Methane (CBM) gas focused company Tlou Energy listed on the Botswana Stock Exchange’s (BSE) main board this week Wednesday seeking to raise P33 million to fund its projects. Tlou Energy became the third company to list on the BSE this year after the listings of Minergy and CA Sales. The company is already listed on the Alternative Investment Market (AIM) in London as well as Australian Securities Exchange (ASX). Tlou Energy’s focus is on mining and prospecting licenses in Botswana which are considered highly prospective for CBM. The company Managing Director, Gabaake Gabaake, said their reserves are the only independently assessed CBM reserves in the region. Gabaake announced the company’s plans at the listing ceremony on Wednesday which includes putting about 100 megawatts in the national grid by 2019. They are currently producing power on-site using gas which indicates potential to produce more which could be put on the national grid. The company says it plans to also augment the energy requirements of the Southern African region, which is experiencing energy deficits during the period in which there is growth in both the population and economies.
The money that Tlou is seeking to raise will be directed to finance its Lesedi CBM Project which is the company’s most advanced project located in the Karoo Kalahari Basin in south-eastern Botswana. Having advanced the project, the company says it is now looking to fully develop the project having already done with exploration and appraisal phase. Gabaake said they have already received approval for the Environmental Impact Assessment (EIA) and are now actually waiting to mine the gas. He said it was not easy for the project to be where it is as these kinds of projects take of a lot of time and require a lot of funding. Tlou, which is registered in Botswana, listed 21, 153, 845 shares at P1.53 per share which shall rank at the equal footing with all the other shares issued by the company to private placees. The company’s reasons for listing include establishing a platform for the future raising of development capital to realise its growth plans; to raise the regional profile of Tlou Energy and its brand; to improve the liquidity of the shares and focus attention of prospective investors on the merits of investing in Tlou Energy, thereby helping it to enlarge the potential investor base for Tlou Energy shares.