TLOU ENERGY SEEKS MORE FUNDING

Tlou Energy, the developers of the country’s first gas-to-power, Lesedi project and other coal-bed methane (CBM) projects has intentions to raise more funds, despite uncertainties on the market.

The decision comes on the backdrop of the company’s numerous activities that have not earned revenue to date, as the consolidated entity is still in the exploration and evaluation or pre-development stage.

Despite operating for over a decade with extensive local and international relationships with investors, Tlou considers funding a key factor for the project.

“The company will need to raise additional debt and/or equity funds to support its ongoing operations or implement its planned activities and strategies.

This includes but is not limited to funding to complete the infrastructure necessary,” said Tlou Managing Director,

Anthony Gilby, on the company’s consolidated financial statements for the half-year ended 31 December 2023.

He said the company actively manages its capital requirements and maintains close relationships with potential investors.

“The company continues to explore sources of both equity and debt capital. Health to connect to the power grid and generate electricity at the Lesedi project and funds to facilitate drilling of additional gas wells to deliver sufficient gas for development of the proposed 10MW power project.”

However, Gilby warned that there can be no assurance that such funding will be available when required or on satisfactory terms or at all. “Inability to find sufficient funds may result in the delay or abandonment of certain activities which would likely have an adverse effect on the company’s progress,” Gilby warned.