Tlou Energy Ltd (LON:TLOU) managing director Tony Gilby, in the company’s financial results statement, highlighted the company’s achievements during 2018 and said it is in a good position to make “further significant advancements” in the coming months.
The results come as Tlou is advancing a well drilling and development programme at the Lesedi coal bed methane project, in Botswana.
Earlier this week, Tlou told investors that it has begun production testing operations at Lesedi, following the completion of the Pod 3 infrastructure, and that it would now proceed with de-watering and the lowering of pressure in the coal seam in order to start gas flows.
It anticipates initial production performance statistics will be available during the second quarter of this year.
In the meantime, drilling work continues at the Lesedi 4 pod. The 4A lateral well has so far been drilled, and work on the 4B lateral is presently underway. It is planned that 4B will be the final well in the current drilling programme.
Gilby, in Tuesday’s statement, said: “We are proceeding with a series of value-adding field operations, the most significant of which is the drilling of initial development wells (Lesedi 3 and 4) which is on-going.
“These wells have been positioned in the best technical location and orientation to potentially result in enhanced gas flows compared to what has already been achieved at Selemo.
“The results of the recently acquired seismic data coupled with an extensive geological review of our area by our independent geological consultants have determined the optimum positioning for the current drilling campaign.”
He added: “In terms of gaining access to the power grid to ultimately monetise our gas via electricity, we have continued to run parallel processes of going down the path of the re-issued gas-to-power tender (while recognising its challenges) as well as going it alone by gaining all of the necessary approvals to independently connect to the grid in any event.
“The company notes that the Southern African Power Pool region continues to suffer from inadequate investment in electrical power generation capacity and sooner rather than later will again experience significant electrical energy shortages.”
In regards to the financial results, the pre-revenue firm reported a US$1.52mln loss. It ended the December with US$5.52mln of cash and equivalents.