Tlou Energy Nears 90% Completion of Lesedi Substation Ahead of Data Centre Launch

Lesedi Project – Testing the Basin’s Potential

Tlou Energy’s latest quarterly report highlights steady progress at its flagship Lesedi Project in Botswana, where the company is rigorously assessing gas production capacity from the Lesedi 4 and Lesedi 6 wells. These wells are undergoing a dewatering process within an undeveloped coal basin, a capital- and time-intensive effort that places Tlou at the forefront of demonstrating the basin’s gas potential. The company is focused on optimising output from existing wells before committing to new drilling, with an independent third-party assessment planned to guide next steps.

Kala Data Centre – A Strategic Partnership

In parallel, Tlou is advancing the Kala Data Centre project, a modular high-performance computing facility powered initially by gas from the Lesedi wells. Fabrication of the data centre is underway, featuring innovative immersion cooling technology designed for efficient thermal management. The facility is expected to be delivered and commissioned on site in the third quarter of 2025. This partnership with Kala Data FZCO includes exclusive rights for Kala to operate the centre for five years, with future plans to integrate solar power, underscoring a hybrid energy approach.

Infrastructure and Grid Integration

Supporting these developments, the on-site electrical substation is approximately 90% complete. Once finalised, it will enable the integration of gas-fired power generation with Botswana’s national transmission network, allowing Tlou to sell electricity to the grid. A settlement agreement with the substation contractor is pending, after which remaining works will be completed by subcontractors. This infrastructure is critical to unlocking the commercial potential of the Lesedi gas-to-power project.

Exploration Outlook at Mamba and Boomslang

Beyond Lesedi, Tlou continues exploration activities at the Mamba and Boomslang project areas, focusing on the Lower Morupule coal seam with plans to evaluate additional seams as part of a long-term strategy. These areas remain in early stages, with further technical work required before resource evaluation and development planning can proceed. Successful results here could lead to separate project developments, diversifying Tlou’s asset base.

Financial Position and Forward View

At quarter’s end, Tlou held approximately A$210,000 in cash, supplemented by unused financing facilities totaling A$2.53 million. Payments to related parties primarily covered directors’ salaries and associated costs. As Tlou moves toward operational milestones in Q3 2025, particularly the commissioning of the Kala Data Centre and completion of the substation, the company’s ability to optimise gas production and secure stable revenue streams will be closely watched by investors.