Tlou Energy Limited (LON:TLOU) has said it believes there’s a significant likelihood that it will secure investment in the near term.
The coal bed methane firm, in a stock market statement, confirmed that it is in discussion with parties considering investment into the company either via equity or debt provision.
Wednesday afternoon’s statement was in response to a query from the Australian Securities Exchange, specifically in relation to the financial period ended 31 December 2018.
“The company confirmed that it expects to have negative operating cash flows for the coming periods as the Company is engaged in gas exploration and early-stage development,” Tlou said.
It added: “Tlou expects to be able to continue its operations and meet its objectives.
“Operating cash flows have been higher during Q4 2018 and Q1 2019 due to the ongoing drilling programme being undertaken by the Company. This work programme will be completed in Q1 2019, and thereafter operating cash flows will be significantly reduced.”