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The company had planned to list last year but pulled the pin on a $75 million raising in favour of a smaller $10 million IPO this year.
As a result of the IPO, Tlou will be trading with an initial market cap of $51.5 million, with the $10 million IPO to go towards funding flow testing at its coal bed methane licences in Botswana.
Tlou holds a licence in the Karoo Basin covering about 7000sq.km and has already spent about $40 million on the ground on drilling and testing programs together with operator Saber Energy.
It will be hoping to drill pilot wells later this month for completion in the third quarter, with an eye towards flow testing in the fourth quarter.
Tlou told the market yesterday morning that the flow testing would be crucial in obtaining reserve certification.
The company boasts some CSG talent, with managing director Anthony Gilby one of the co-founders of Sunshine Gas which went on to be bought out by BG for $1.1 billion as a precursor to QGC and the Queensland Curtis LNG project in Gladstone.
“We are delighted with the support we have received for the IPO and would like to thank the new and existing shareholders who participated in this capital raising,” Gilby said.
The offer price on the IPO was 50c.
