I caught up Colm Cloonan the finance director at TLOU Energy who talked me through the news released overnight in Australia which was presented at 7am on 5th July, The company intends to develop its gas field which will intern supply a gas to power coal bed methane power plant which will improve the cost and efficiency of providing much-needed power needs of Botswana.
TLOU Energy announced that the tendering process with the Botswana government had been successful as they approved a 10MW project and offered the company a 50MW power project which could then lead to a 300MW greenfield power program. This has exceeded the companies expectation not only by the commitment from the government but also the encouraging potential revenue stream which a clean and efficient coal-bed methane gas to power plant would return.
The company has strong and meaningful relationships, its in-country manager Gabaake Gabaake ( ex-senior government ministry ) has a comprehensive relationship with officials in Botswana, The company by the admission of the board looks is extremely undervalued offering a scalable model which should prevent major dilution and help corroborate a milestone model which will see the company grow incrementally. ” There isn’t new stock coming into the market, the only way to get in is in market which will drive the share price up ” – Colm Cloonan