6th Feb 2019 16:49
LONDON (Alliance News) - Tlou Energy Ltd on Wednesday confirmed it expects its operating cash flows to be negative "for the coming periods" and it is in discussions to acquire funding.
Shares in Tlou closed down 8.7% at 6.34 pence on Wednesday.
Tlou was responding to a query made by the Australian Stock Exchange on Monday. In this query, the ASX asked if Tlou was expecting to continue to have negative operating cash flows, as well as if the gas-to-power company has taken steps or has proposed any steps to raise cash and fund its operations.
In response, Tlou said it does expect to post "negative operating cash flows for the coming periods" as it continues its gas exploration and development.
Tlou also said it is in talks with "external parties that are considering investing in the company either through equity or the provision of debt facilities". Tlou said these discussions are "at an advanced stage" and that "there is a significant likelihood that this investment will be successfully completed in the near term".
The ASX also asked if Tlou expects to be able to continue operations and meet objectives, and requested that Tlou disclose any necessary information about its financial condition.
"Tlou expects to be able to continue its operations and meet its objectives. Operating cash flows have been higher during Q4 2018 and Q1 2019 due to the ongoing drilling programme being undertaken by the Company. This work programme will be completed in Q1 2019, and thereafter operating cash flows will be significantly reduced," said Tlou.
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