Tlou Energy awarded another Prospecting Licence
Tlou Energy this week told investors it has been awarded a new prospecting licence by the Government of Botswana.
The company is on course to develop the first Coal Bed Methane (CBM)* power generation in Botswana.
The new licence, codenamed ‘Boomslang’, was granted by the Department of Mines housed under the Ministry of Mineral Resources, Green Technology from Inspire Energy and Energy Security.
It covers an area of approximately 1, 000 square kilometers, bringing the total area held by the company to 9, 000 square kilometers.
The Licence, PL011/2019, is valid for a period of three years and is situated adjacent to the company’s existing licences in Central Botswana.
Tlou Energy believe the licence covers a ‘highly prospective’ area as it is located on-trend with the encouraging results observed at its CBM project, Lesedi Project.
It further believes that with the initial developments ongoing at the Lesedi Project, the award of the Boomslang area provides it with more flexibility and additional options.
The company is looking to become the first in Botswana to develop power through gas to power method.
Having submitted its response to the government’s Request for Proposal (RFP) for the development of a 100 Megawatts (MW) of CBM fuelled power plants in Botswana, the company received a boost recently when the Public Procurement and Asset Disposal Board (PPADB) approved from the Ministry of Minerals to open the financial proposal in relation to the tender.
Tlou is competing with another company, Sekaname (Pty) Ltd, which also submitted a proposal for the tender.
The two achieved scores of 89.8 percent and 86.4 percent respectively at the technical stage.
If successful in its bid, Tlou Energy says it will look to expand on the projects it is undertaking.
The energy company has so far drilled six wells, which comprise the Lesedi 3 and Lesedi 4 development ponds as part of the recent field drilling program.
These ponds are strategically situated adjacent to the company’s proposed central gas gathering and power generation utility.
CBM is an unconventional form of natural gas found in coal deposits or coal seams.
CMB is formed during the process of coalification, the transformation of plant material into coal.
It is considered a valuable energy resource with reserves and production having grown nearly every year since 1989.