Tlou Energy Limited (ASX:TOU) Reports Progress on Lesedi Project
Lesedi Project Update
Tlou Energy Limited’s Lesedi project is making considerable strides towards initiating power generation later this year. The Lesedi substation is nearing completion, with projected final touch-ups occurring in the first quarter of 2025. Tlou Energy continues to focus on enhancing gas flow rate consistency and volume at this pivotal project.
The December 2024 quarter marked key advancements. The commissioning of the substation and optimised gas production are crucial as Lesedi emerges as Botswana’s premier gas project. This project will meet the growing demand for dependable baseload power in the region.
Key Achievements
Significant milestones include the near completion of the Lesedi substation and the successful installation of a 5MVA step-up transformer, essential for enabling up to 5MW of power generation. Moreover, the completion of the 100km, 66kV transmission line will connect the project to Botswana’s national grid, providing access to a vast electricity market throughout Southern Africa.
Optimisation efforts in gas production continue, with ongoing dewatering of the coal reservoir aimed at improving flow rates. Tlou’s existing production pods will initially support power generation, with more drilling planned for the first half of 2025 pending funding.
Power Generation Plans
The company is currently in discussions with suppliers for gas-fired generators capable of delivering up to 1,375 kW. These will be installed in phases to coincide with gas production capacity. Electricity generated at Lesedi will be sold into the grid via the completed transmission line.
Cash Position
At the end of the quarter, Tlou Energy reported a cash position of approximately A$499k, along with unused financing facilities of A$3.1m. Payments to related parties amounted to A$98k, covering directors’ salaries and associated expenses.
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