April 2013 - Tlou Energy lists on the ASX

Tlou Energy (ASX: TOU) has reached a high of A$0.58 in its first hour of public life, up 16% on its IPO and open price of $0.50.

The company lit up the boards of the ASX today following the completion of a successful IPO raising $10 million.

Tlou Energy has witnessed strong investment demand from institutional and retail investors resulting in a market capitalisation of $51.5 million.

The company is focused on identifying and developing unconventional gas opportunities in southern Africa.

Tlou’s principal assets are located in Botswana, a country with a relatively stable fiscal regime plus a low-cost operating and regulatory environment.

These assets, which include the Karoo Central and Karoo West CSG tenements, span around 7,000 square kilometres of the Karoo-Kalahari basin.

Tlou has been active in Botswana for over three years with about US$40 million having been invested on drilling and testing programs to date by Tlou and previous operator, Saber Energy.

The Karoo Central project is one of the most advanced CSG projects in southern Africa as a result of this investment.

Importantly, key permits within the Karoo Central project area have also recently been renewed by the Botswana Ministry of Minerals, Energy and Water Resources for an additional two year term.

Tlou will use the funds raised from the IPO to test for commercial gas flows in its Karoo Central project area.

The company expects these commercial gas flows will result in reserve certification, which is the ultimate objective of the current work program.

Tlou is on target to begin pilot well operations later this month. Pilot well drilling is anticipated to be completed in the September quarter of 2013 with first gas flows expected in the December quarter