Tlou Energy Ltd

Interim Managing Director and CFO Colm Cloonan resigned immediately as a director, and will advise on transition. Ian Campbell becomes Executive Chairman while a CEO is recruited. The registered office is planned to move from Brisbane to Sydney.

director officer appointment

Half-year to 31 December 2025 shows a A$60.5m loss, including a A$58.6m impairment of exploration assets tied to a decision to focus on core Lesedi assets. Excluding impairment the loss was A$1.9m. Further development depends on new funding.

half year report

The Kala Data Centre was commissioned and began generating initial revenue from Lesedi 4 gas, the first commercial use of Tlou's coalbed methane in Botswana, though only at modest proof-of-concept scale. Substation completion and grid connection for power sales were still outstanding and subject to funding.

production update

After ASX queries, directors say the company is solvent, relying on continued near-term funding support from largest shareholder ILC (controlled by Chairman Ian Campbell). It is also discussing funding with others and progressing an equity raising, after the 0.3-quarter funding figure.

other

Managing Director and CEO Tony Gilby, who led Tlou for about a decade, stepped down immediately for personal reasons and will advise. Finance Director Colm Cloonan is Interim Managing Director while a permanent replacement is sought.

director officer appointment

Dr Ian Campbell, whose ILC Investments is the largest shareholder and lender, becomes Non-Executive Chairman, replacing Martin McIver, who stays as a director. Allan Sullivan joins the board. Company Secretary Solomon Rowland resigned; Colm Cloonan takes over the role.

director officer appointment

Binding agreement with Kala Data (the earlier unnamed developer) for a data centre at Lesedi. Kala funds wells and equipment via an interest-free loan; Tlou gets 25% of profits until repaid, then 50/50. Kala has five-year exclusivity. The 10MW BPC project is unchanged.

farm in farm out agreement

Signed a non-binding Heads of Agreement with an unnamed data centre developer to build a computing facility at Lesedi, powered by Tlou gas. A proof-of-concept using Lesedi 4 gas worked; the developer would fund more wells, but no binding deal or funding is yet secured.

material agreement

Shareholders approved the AIM delisting. The last AIM trading day is expected to be 30 Dec 2024, with cancellation at 7am UK time on 31 Dec. ASX remains the primary trading venue, with the BSE listing continuing. Chairman's address repeated.

other

Discloses that the Feb 2024 A$1m ILC BC loan (A$480k drawn, 10%) was a related-party deal that should have been announced under AIM rules but was missed. The facility has now been extended to A$5m on the same terms; directors call it fair.

material agreement

September quarter: substation ~85% done, but gas flow from Lesedi 4 and 6 fluctuates because coal fines jam pumps. First power now expected mid-2025, up to a year later than earlier guidance of 'later this year'. Dr Ian Campbell indicated willingness to provide funding.

quarterly activities report

Proposes cancelling the AIM listing (admitted 2015), subject to a 75% shareholder vote at the 26 November AGM; effective date 31 December 2024. Reasons given: weak UK support for explorers and high costs. ASX and BSE listings remain, with a free swap into ASX shares.

other

Raised A$995,787 by placing 28.45m shares at A$0.035, from directors, family and sophisticated investors. 12.25m director shares need shareholder approval at a meeting around 25 September. Gilby, Swire and Cloonan are subscribing. Funds go to Lesedi.

capital raising announcement

Signed a non-binding term sheet with a Botswana investment firm for a BWP76.5m (~A$8.5m) mezzanine loan: five years, 15% coupon, interest may be capitalised for 24 months. It would fund generators and the substation, but is subject to due diligence and approvals.

debt financing

A second shortfall placement raised A$560,000 (16m shares at A$0.035), taking the total entitlement offer to about A$7.9m. The company will place no further shortfall, leaving 153.5m shares unplaced. Shares on issue rise to 1,270,133,251.

capital raising announcement

Placed 177.6m shortfall shares at A$0.035 for about A$6.2m. Botswana Public Officers Pension Fund took 161.3m (BWP50m) and now holds 16.63%. Another 169.5m shares can be placed before 30 April 2024. Funds go toward first power at Lesedi.

capital raising announcement

The 66kV line is complete and connected to the Serowe substation, ending Lesedi's isolation from the grid. The Lesedi substation is ~38% complete. Line energisation is expected mid-year, subject to funding; the company aims to secure remaining funds this quarter.

joint venture update

The A$13.3m entitlement offer was heavily undersubscribed: only A$1.14m (32.6m shares) taken up, leaving a ~A$12.1m shortfall. Directors took A$673k; largest holder ILC did not participate, preferring debt support. Directors are talking to Botswana and UK investors about placing the shortfall.

capital raising announcement

Launched a non-renounceable entitlement offer of 4 new shares for every 11 held at A$0.035 to raise up to about A$13.3m, for ASX and BSE holders only. Directors commit at least A$613,308. Funds target Lesedi grid connection and working capital.

capital raising announcement

First gas reached surface and was flared at the new Lesedi 6 pod, the fastest from dewatering start (late October) to gas in the field. No flow rate yet; Lesedi 4 is dewatering as expected. A positive first sign after the redrilling.

flow test result

Secured a new A$1m unsecured loan from ILC-related ILC BC and an extra A$2m on the existing ILC loan, all at 10%, repayable at the earlier of 3 years or 60 days after first electricity. Loans total A$5m and are convertible at 3.5c, subject to shareholder approval.

debt financing

Raised A$678,977 through a placement of 19.4m new shares at A$0.035 from Australian and UK sophisticated investors, for Lesedi development. Price was a 25% premium to the A$0.028 close. Shares on issue rise to 1,043,982,357. A small top-up after the June offer.

capital raising announcement

Entitlement offer raised about A$6.58m of a possible A$10.65m: A$1.58m from shareholders (14.8% take-up) plus A$5m from underwriter ILC. ILC rises to about 34.85%, with 1,025,583,022 shares after issue. Resolves the open offer; shortfall of roughly A$9.06m.

capital raising announcement

Launched a partially underwritten entitlement offer of 4 new shares for every 11 held at A$0.035, raising up to A$10.65m; ILC Investments underwrites A$5m. Directors commit at least A$392,760. Target is first power in 2Q 2024. Follows the A$2m ILC loan.

capital raising announcement

Received a A$2m unsecured three-year loan from ILC Investments, Tlou's largest shareholder, at 10% interest with no arrangement fee, repayable 30 April 2026 or earlier without penalty. For working capital and Botswana operations. Further capital still being sought.

debt financing

Lesedi 6 production pod spudded on 10 April 2023, at about 59m depth. One vertical well with two lateral wells, next to the existing Lesedi 4 pod. Dewatering and gas flow testing follow completion. Delivers the 1Q23 drilling plan, slightly late.

drilling spud

Firm commitments for about A$3.07m via 87,796,135 shares at A$0.035, a 12.5% discount to last close, mainly from Dr Campbell's entity (A$2.5m) plus directors and others. Subject to a January 2023 shareholder vote; would take Campbell to 25.79%. Expert calls it 'not fair but reasonable'. Funds are for gas production wells.

capital raising announcement

A second Campbell-entity placing raised A$3m via 85,714,286 shares at A$0.035, lifting his holding to 19.23% and total shares to 743.1m. He may nominate a director; a drilling campaign is planned for 2023. Follows the A$2m placing a week earlier.

capital raising announcement

Raised A$2m placing 57,142,857 shares at A$0.035 with a new strategic investor, Dr Ian Campbell (8.69% holding), at a 34.6% premium to the last close. Funds are for Lesedi development including substations; a further tranche is under negotiation. Addresses the funding gap.

capital raising announcement

ASX paused trading in Tlou shares pending a further announcement. No reason is given in the notice itself; the ASIC announcement the same day follows.

other

ASIC notified Tlou on 6 September 2022 that it is investigating suspected breaches of the Corporations Act and ASIC Act over statements in ASX announcements, including the Feb 2021 'Carbon Neutrality' and Oct 2021 'Clean Energy For Botswana' releases. The period covered is Feb 2020 to Mar 2022. Tlou is co-operating.

regulatory community update

Contract signed with Zismo to build the 100 km, 66kV transmission line connecting Lesedi to the grid, expected to take about 15 months. The OptiPower substation contract is still to be signed. This moves the long-pending Zismo thread into construction.

contract award

Tlou received a 15-year, 10MW generation licence from BERA, and transmission line work is set to start once final signatures are in. Lesedi 3, shut in about 18 months, is flowing gas again. First electricity sales to BPC are targeted for 2H23.

regulatory community update

Tlou signed a BWP 50m (~US$5m) five-year convertible note with BPOPF, its largest shareholder, at 7.75% interest, converting at a 10% discount to the 90-day VWAP. A further BWP 50m equity investment is agreed in preliminary terms for after 1 July 2022. Approvals are conditions to the note taking effect.

debt financing

Tlou signed a 10MW power purchase agreement with Botswana Power Corporation, for an initial five-year term, resolving the long-awaited PPA thread. 10MW could earn about US$10m a year. Terms are agreed with a financier for US$10m, but legal agreements are not yet signed or binding.

material agreement

Tlou signed a binding heads of agreement with Synergen Met to build a hydrogen and solid carbon prototype at Lesedi, using gas it currently flares. Third-party build costs are split 50:50, hydrogen and carbon products owned 50:50, and the prototype is due on site in 1Q22. A new diversification step beyond power.

material agreement

Tlou is developing a hydrogen strategy to run alongside its gas-to-power project. Two financiers for the ~$10m first phase are in internal approvals, while others want the 10MW PPA concluded first. The company says it cannot estimate how long that will take. Strategy is early-stage, with no commitments or figures.

other

Transmission line construction tender awarded to Botswana-based Zismo Engineering and substation construction to South Africa's OptiPower, resolving the tender thread. Contracts are still to be finalised before construction starts on the ~100 km, 66kV line to Serowe.

contract award

Botswana's environmental department approved the Boomslang exploration environmental statement, resolving the long-awaited approval for PL011/2019 (100%). Drilling there still depends on funding. Transmission line tender award is expected early next quarter, and Tlou plans to bid on the Orapa gas supply tender, closing in May.

regulatory community update

Tlou raised about £2.625m (~A$4.725m) by placing 75,000,000 shares at £0.035 (~A$0.063), a ~21% discount to the last ASX close. Funds go to the 66kV transmission line to Serowe, and construction tender responses are in, so work can start without waiting for the larger financing.

capital raising announcement

The 2MW PPA and grid connection agreement with BPC are now signed, resolving the long-pending signing. Negotiations on the 10MW tender start January 2021. Financing is slow, as some financiers want the tender concluded first. Construction tenders went out in December.

material agreement

The shortfall was placed: 6,350,000 shares at A$0.04 raised about A$0.25m, completing the full A$3.0m entitlement offer. Placees get one A$0.08 option per two shares, and the underwriter gets 10 million options. Share count rises to 513,277,061.

capital raising announcement

Entitlement offer closed with about A$2.75m of applications at A$0.04, including about A$0.88m from sub-underwriters and directors. The remaining ~A$0.25m is to be placed. Funds go to detailed transmission line design and development finance. Directors' excess shares need shareholder approval.

capital raising announcement

Tlou receives its electricity generation licence from BERA: 15 years, for 2MW of CBM gas and solar generation at Lesedi, selling to BPC at the approved tariff. This resolves the open generation licence thread for the 2MW interim project.

regulatory community update

Partially underwritten entitlement offer of 1 share for every 6 at A$0.04 to raise up to about A$3.0m, with a free option (A$0.08, two years) per two shares. Melbourne Capital underwrites A$2.0m; directors commit A$750k. Funds go to 66kV line design and funding due diligence. Offer price is well below the 2019 raisings at A$0.10.

capital raising announcement

An interim 2MW CBM pilot power purchase agreement is agreed with Botswana Power Corporation, now in final regulatory formalities; terms are confidential. This delivers the temporary PPA sought since February and a route to grid connection and first revenue. The separate 10MW proposal is still under assessment.

material agreement

Covid-19 and market conditions prompt cost cuts: the managing director takes 50% of contracted pay from 1 January 2020, then 25% from 1 April; other senior staff take 50%. Lesedi pods may be shut in, and higher sustained gas rates are expected to take considerable time without extra wells.

other

Botswana's ministry confirmed in writing its commitment to negotiating the PPA and agreed to discuss a temporary PPA for pilot supply while the full PPA is negotiated. This matches Tlou's interim-PPA request. Nothing is signed; BPC leads the talks, subject to approvals.

material agreement

Lesedi 3 and 4 each reached a sustained gas flow of about 20 Mcfd, with rates expected to rise toward a commercial peak. Tlou targets a power purchase agreement and Botswana financing in late 2019, and first electricity sales potentially in Q4 2020.

production update

Tlou has written confirmation from Botswana's government that it is a preferred bidder in the 100MW gas-power tender, resolving the pending decision; project agreements are still to be finalised. It cites the most competitive cost of energy, and cash of about A$6.5m with no debt.

contract award

Botswana's environmental department approved the downstream environmental statement for up to 20MW of gas power, a 66kV line to Serowe and a solar farm of up to 20MW, valid 30 years. Tlou calls it the final environmental approval needed; this closes the open EIA thread.

regulatory community update

Tlou raised BWP21.8m (~A$2.9m) from Botswana investors, issuing 29,066,650 shares at BWP0.75 (~A$0.10). The Botswana Public Officers Pension Fund took 28m shares, lifting it to 10.49%. Total shares rise to 450,180,185.

capital raising announcement

Tlou raised about A$1.2m via 12,000,000 shares at A$0.10 (about a 5% premium to the last close) from two existing shareholders, escrowed 12 months. Management says it removes near-term funding pressure. The tender outcome is expected in coming weeks.

capital raising announcement

Tlou was awarded a new ~1,000 km2 prospecting licence, Boomslang (PL011/2019), for an initial three years, adjacent to Lesedi. Total licence area rises to ~9,300 km2.

regulatory community update

All six wells for pods Lesedi 3 and 4 are drilled, on time and in line with budget, and are dewatering. Strong gas was seen bubbling when laterals met the vertical wells, especially Lesedi 4P. Controlled gas pressure indications are expected in Q2 2019.

drilling result

Tlou passed the technical stage of the 100MW gas-to-power tender, scoring 89.8% against rival Sekaname's 86.4%. The procurement board approved opening both financial proposals, the final stage. This advances the October 2018 re-tender response, though no award has been made.

material agreement

First pilot production well, Lesedi 3P, was spudded on 16 October, planned to 580m. It is the first of the dual-lateral pods, resolving the October spud expectation. Production start-up is targeted for early 2019; power licence and offtake work continues.

drilling spud

Tlou submitted its response to the government's 100MW coal bed methane power tender, proposing a staged project starting with up to 10MW (first 2MW). No date for a government response is known; assessment is on eligibility, technical and funding criteria. Drilling is due very soon.

material agreement

Botswana government released the 100MW re-tender, inviting Tlou and local firm Sekaname. A compulsory pre-tender meeting is on 9 August and bids close 12 September 2018. This resolves the long wait for the re-tender document, though winning is not assured.

regulatory community update

Entitlement offer closed: A$3.7m of applications for 37.16m shares at A$0.10, and brokers placed the 17.75m-share shortfall for about A$1.8m. With the June placement, Tlou has raised about A$8m, with projected cash of about A$12.4m, and plans up to three production pods this year.

capital raising announcement

Tlou raised A$2.5m via a placement of 24.75m shares at A$0.10, and launched a 1-for-6 entitlement offer of up to 54.9m shares at A$0.10 (up to A$5.5m), partly underwritten to A$1.37m. Funds go to production pod drilling in H2 2018 and core-holes.

capital raising announcement

SRK upgraded Lesedi and Mamba reserves to 2P 40.8 BCF (up 944% from 3.9) and 3P 426.6 BCF (up 63% from 261.1), as at 31 December 2017. Based on seismic and core-hole thickness data; gas analysis from the core-holes is not yet included.

resource reserve update

The Ministry cancelled the 100MW CBM power tender and asked for a re-tender between the same two bidders, Tlou and Sekaname. This sets back the September 2017 bid; Tlou will assess the re-tender before deciding whether to take part, and is pursuing other regional sales.

regulatory community update

The Botswana Stock Exchange listing was approved and trading began 13 December 2017. 21,153,845 shares were issued to African Alliance funds at P1.56 (about A$4.1m), resolving the conditional subscription. Issued capital is now 327,196,693 shares.

capital raising announcement

Tlou signed conditional deals with African Alliance-managed Botswana funds to subscribe about 21.2m shares at P1.56 (about A$0.20), raising P33m (about A$4.1m). It depends on a Botswana Stock Exchange listing expected mid-December 2017; funds would finish appraisal and begin first-phase development drilling.

capital raising announcement

Core-hole drilling began at Lesedi at a location picked from early seismic data, while the survey nears completion. Aims to confirm coal quality and gas content and support reserve growth. Development is planned for 2018, subject to the 100MW tender outcome.

drilling spud

Tlou lodged its response to the up-to-100MW CBM power tender, starting with up to 10MW, before the 20 September deadline. Only two companies bid and no decision date is known. All five Mamba licences were renewed to 30 June 2019, resolving the earlier three-month extension.

regulatory community update

Botswana granted Tlou a Mining Licence over about 900 km2 at Lesedi (the old PL002/2004), the first CBM mining licence of its kind there. It follows the July application, gives security of tenure and moves the project from appraisal toward development. Mamba licences extended three months pending renewal.

regulatory community update

Tlou lodged a mining licence application for Lesedi, which it describes as the first of its kind in Botswana; a licence is needed to sell gas. The Ministry will extend the 12 July tender closing date, with no new date yet.

regulatory community update

Tlou generated its first power from its own coal bed methane gas, using a 60 kVA gas generator at the Selemo pilot to replace a diesel unit. Expected to cut diesel use by about 50,000 litres a year; a second unit is planned. A small proof of concept.

production update

Tlou appointed Velseis for a fully funded 250 km 2D seismic survey over Lesedi and Mamba, due to start Q3 2017. It follows the earlier need for seismic and aims to expand gas reserves and guide coring wells. Tender proposal still due July 2017.

contract award

The SPP raised about A$0.8m (8.28m shares at A$0.10, no scale-back) and an additional placement of 6.78m shares added about A$0.7m. Total raised since March is A$6.7m. Shares on issue rise to 304.04m. Funds go to seismic, cored wells and licensing.

capital raising announcement

Botswana's ministry renewed the three 2004 Lesedi prospecting licences (PL001-003) for two years to 31 March 2019. This resolves the open renewal thread. Tlou may convert part of the area to a mining licence, which is needed before full field development.

regulatory community update

Tlou raised A$5.2m by placing 51.79m shares at A$0.10 (17.9% of enlarged capital), a 12-19% discount to the 10-day average price. Funds go to 2D seismic, shallow cored wells, licensing studies and Selemo testing. An SPP of up to A$2m was also offered. Shares on issue rise to 288.99m.

capital raising announcement

Tlou signed a binding Heads of Agreement with UK-based Independent Power Corporation to jointly develop and bid for the up-to-100MW CBM power project. IPC has letters of interest for funding and will fund half of external tender costs, up to US$200,000. Exclusivity runs to 31 December 2017; the agreement is subject to board approvals.

farm in farm out agreement

SRK upgraded reserves as at 1 January 2017: 2P up 44% to 3.9 BCF and 3P up 390% to 261 BCF. This includes the first Mamba reserves, from a western extension of the Selemo pilot area. Builds on October's maiden reserves.

resource reserve update

Tlou received a formal government Request for Proposal to develop up to 100MW of CBM power; it is one of two companies selected to bid. Tender closes 12 July 2017. This is a step toward a binding offtake agreement, not an award.

contract award

Anthony Gilby, on illness leave since January 2016, returns as Managing Director from 1 January 2017, on A$260,837 salary (50% of his contracted pay). Gabaake Gabaake reverts to Executive Director. Resolves the open question of Gilby's return.

director officer appointment

SRK certified Tlou's first reserves, Botswana's first for CBM: 1P 0.1 BCF, 2P 2.7 BCF, 3P 52.9 BCF at Lesedi (Lower Morupule seam). 3C contingent resources fall slightly to 3,243 BCF. Resolves the reserves thread; SRK indicates economic development is possible.

resource reserve update

Botswana's environmental department approved the Lesedi Environmental Impact Statement after public review, ahead of the Q4 expectation. This clears the way to apply for a 20-30 year mining licence for the 50 MW project, moving Tlou from exploration toward development.

regulatory community update

Tlou raised A$3m through a placement of 31.58m shares at A$0.095 (15.4% of shares), a 9-19% discount to the 20-day average. IK Botswana Investments takes 7.115m shares. Funds go to Selemo testing, first reserves certification and licence approvals; ends the run of falling cash.

capital raising announcement

Tlou renewed its non-binding co-operation agreement with General Electric and IK Holdings, covering the 50 MW project, Orapa gas supply and a proposed 300 MW plant. It expires 30 November 2016 and can be terminated anytime; it binds no one to a deal. Follows the earlier MOU's expiry.

material agreement

Botswana's environmental department confirmed the Lesedi Environmental Impact Statement, submitted December 2015 for up to 200 pods, adequately assesses impacts. It now goes to public review, with final approval expected in Q4 2016. This is a prerequisite for a 20-30 year mining licence.

regulatory community update

Botswana's procurement board confirmed Tlou's selection for a power project expected to be 50 MW, five times the 10 MW originally applied for. Full details are still awaited from the ministry, and off-take terms, network access and funding are still to be negotiated. Resolves the pilot application thread.

contract award

Selemo 4 achieved sustained gas flow, beating expectations and possibly becoming a second key producer beside Selemo 1. A coal-fines workover at Selemo 1 is done and testing restarted. Gas so far comes mainly from vertical sections; no rates given. Tony Gilby's health has improved and he is expected to take on more duties in the second half.

flow test result

Botswana's government proposed including 100 MW of coal bed methane power in its future supply plans. Tlou still awaits the result of its tender for a 10 MW pilot within that plan. Gas testing continues after maintenance; Orapa gas supply talks remain unresolved.

regulatory community update

Long-term gas testing began 8 February at Selemo 1, with the two new flanking wells shielding it from water; the problem that cut short its 2014 test. Flows are consistent and building, with gas flared. Data is meant to support Botswana's first certified reserves.

flow test result

Chairman Nathan Mitchell resigned to focus on other commitments and stays on as adviser. Director Martin McIver became Non-Executive Chairman. CFO Colm Cloonan joined the board as Finance Director on his existing A$220,000 salary, based in Ireland to serve the AIM listing.

director officer appointment

Managing Director Anthony Gilby has taken extended sick leave, length undetermined. Executive Director Gabaake Gabaake is acting MD/CEO, with CFO Colm Cloonan assisting as Deputy CEO. This is a temporary leadership change during the Selemo testing phase.

director officer appointment

Tlou submitted its final Environmental Impact Statement for Lesedi, covering up to 200 production pods; approval is expected in the first half of 2016 and is a precursor to a mining licence. Extended gas testing is expected in the coming weeks once pressures plateau.

regulatory community update

Tlou began trading on London's AIM on 30 November 2015 (ticker TLOU), alongside ASX. It placed 18,462,973 shares at A$0.14 (£0.065), raising about A$2.6m, completing the dual listing and the minimum placement announced in October.

capital raising announcement

Tlou is dual listing on London's AIM (expected about 30 November 2015, ticker TLOU) with a placement of up to £1.5m, £1.2m (A$2.6m) committed, at £0.065 or A$0.14 per share. Conditional on shareholder approval at the 27 November AGM and AIM admission.

capital raising announcement

The A$5.5m entitlement offer at A$0.14 is complete. Valid applications covered 61% of shares offered (about A$3.3m); sub-underwriters took the A$2.2m shortfall. Funds the expanded Selemo drilling, overheads and working capital. New shares allot 29 June.

capital raising announcement

Tlou launched a fully underwritten 4-for-15 entitlement offer at A$0.14 per share to raise about A$5.5m, a 30% discount to the last price of A$0.20. Underwritten by Morgans, it funds up to two flanking Selemo pilot pods and a possible step-out well.

capital raising announcement

Tlou signed a co-operation agreement with General Electric and IK Holdings on a proposed gas-to-power framework for the 90MW Orapa station and a proposed 300MW plant. It is non-binding, can be terminated by any party, and expires 30 November 2015.

material agreement

Independent certifier SRK lifted Lesedi contingent resources: first 1C of 4.9 BCF, 2C up 57% to 239.1 BCF, 3C up 42% to 3,295.5 BCF versus the 2013 certification. No reserves booked yet; Tlou expects them later in 2015 after further production testing.

resource reserve update

Tlou signed a non-binding-style gas sales co-operation agreement with South African CNG Holdings, a framework for selling gas for power and compressed gas to industrial customers, including up to 30 MW of power. Binding agreements are still to be finalised.

material agreement

December 2014 quarter: repeats the Selemo peak of about 395,000 cfd. Tlou will focus most resources on Selemo and may shut in Mopani and Lesedi until resources allow. Gas sales talks are advancing, with Orapa Power Station as the target. Cash about A$5.8m.

quarterly activities report

Selemo short-term tests peaked at about 395,000 cubic feet a day, the first quantified gas rate after months of delays. Tlou says results suggest the economic threshold for development has been met. The tests were short-term, and methane content was not measured.

flow test result

Initial gas flows achieved and flared at Selemo 1P and Mopani 2P, as flagged at the AGM. This is the first gas to surface, though no commercial rate is shown yet. Lesedi 1P dewatering restarted after remediation; Lesedi 2P is dewatering.

flow test result

Selemo pumping is stopped to fix a casing integrity issue that has flattened the gas pressure build-up. Tlou acknowledges this delays flow testing and flaring of gas. Cash was about A$9.1m at 30 June.

production update

Selemo has again reached critical gas desorption pressure after restart, a milestone but not yet a flow rate. Tlou was awarded the new Mamba licences next to Lesedi (application lodged earlier), and will relinquish Karoo West given low prospectivity.

production update

Selemo is dewatering smoothly, with critical desorption pressure expected within weeks and gas testing in Q3 2014. Lesedi pumping is stopped because of an anomalous water influx. Tlou is divesting its 49% Zimbabwe interests for nominal consideration, as previously flagged for sale.

production update

Selemo reached critical gas desorption pressure, with casing pressure building over the past week. Tlou expects gas to flow in the near future. This is the first sign of gas, though no flow rate is reported. Lesedi is still dewatering.

production update

Half-year loss to 31 December 2013 was A$4.14m, driven by about A$2.9m impairment of Karoo West and Zimbabwe. Karoo West licences are being relinquished and Zimbabwe interests offered for sale, to focus on Lesedi. This reverses earlier plans for Zimbabwe drilling. A Mamba area application is lodged in Botswana.

half year report

The retail offer raised about A$4.8m, completing the A$13.4m raising at A$0.30. Valid applications covered 75% of the 16m shares offered (A$3.6m); underwriters or sub-underwriters took the roughly 4m-share (A$1.2m) shortfall. Shares issue 27 December, trading 30 December.

capital raising announcement

The rig was released on 29 November. A three-well coring program is planned from late January 2014 near the Selemo and Lesedi pods, as a precursor to certifying Botswana's first CBM reserves, aimed for mid-2014. Selemo was completed as a single-lateral pod.

drilling scheduled

The A$5.7m placement (19m shares) and A$2.9m institutional entitlement component (about 9.6m shares) at A$0.30 are complete. The full A$13.4m raising is underwritten by Morgans and Integra, with directors Gilby, Mitchell and McIver sub-underwriting up to A$992,232, A$300,000 and A$30,000. Retail offer opens 4 December.

capital raising announcement

Lesedi 1B reached 1,492 m measured depth, intersected Lesedi 1P and was drilled under budget, completing the 2013 pilot drilling program. Selemo pumping continues with steady water production; Lesedi testing to start soon. Drilling finished within the 4Q13 timeline.

drilling result

Tlou launches an equity raising of up to about A$13.4m at A$0.30 a share: a A$5.7m placement plus a 1-for-4 entitlement offer of up to A$7.7m. Funds an expanded Karoo Central pilot and core hole program and working capital, confirming the funding need flagged at the AGM. Issue price is a 25% discount to the last price of A$0.40.

capital raising announcement

Pumping of Selemo 1P began on 17 November, the start of production testing at Selemo 1A-R/1P. Early indications are described as positive and consistent with the gassy coals drilled, but no gas or water rates are given. Lesedi 1B drilling is underway.

well test result

Lesedi 1A intersected the Lesedi 1P vertical well at 1,427 m, through 788 m of good gassy coal, on pre-drill time and cost after design changes. Rig moves to Lesedi 1B, and Selemo production testing is about to start. This partly offsets the earlier Selemo problems.

drilling result

September quarter report: Selemo 1A-R intercepted Selemo 1P after 748 m of in-seam coal, while Selemo 1B was suspended at 969 m with pipe stuck. Because of delays, pilot drilling is now expected to finish 4Q13 with first gas in 1Q14, slipping from 4Q13. Zimbabwe drilling is deferred to early 2014.

quarterly activities report

Selemo 1B was suspended at 969 m after loose rock repeatedly caved in and trapped the drill string, leaving the bottom hole assembly stuck. The company says drilling there may not resume in this campaign. The rig moves to the Lesedi pod, and Selemo 1A-R will be completed for testing.

drilling result

Tlou began its six-well Karoo Central pilot programme, spudding Selemo 1A on 11 May 2013 in PL 002/2004. Drilling is due to finish in Q3 2013 with testing from Q4, following the contracts signed in April.

drilling spud

Tlou began trading on the ASX after its $10 million IPO at $0.50, valuing it at $51.5 million. Funds are for testing commercial gas flows at Karoo Central; pilot wells start this month, with first gas flows targeted for 4Q13.

other

Tlou Energy issued a replacement prospectus for its ASX listing, offering 20 million new shares at $0.50 to raise $10 million. This is the company's route onto the ASX.

capital raising announcement