ASX query and response

RNS Number : 2978P

Tlou Energy Ltd

06 February 2019

 

6 February 2019

Tlou Energy Limited

("Tlou" or "the Company")

ASX query and response

Tlou Energy Limited, the ASX, AIM and BSE listed company focused on developing gas-to-power projects in southern Africa using coal bed methane ("CBM") natural gas from its gas field in Botswana received a query from the ASX regarding the Company's Appendix 5B for the period ended 31 December 2018.

The Company confirmed that it expects to have negative operating cash flows for the coming periods as the Company is engaged in gas exploration and early stage development. The Company also confirmed it is in discussions with external parties that are considering investing in the Company either through equity or the provision of debt facilities. These discussions are at an advanced stage and the Company believes that there is a significant likelihood that this investment will be successfully completed in the near term.

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.

The ASX query and the Company's response can be viewed on the ASX website: https://www.asx.com.au/asxpdf/20190206/pdf/442dpmwt60590z.pdf

For further information regarding this announcement please contact:

Tlou Energy Limited	[phone]
Tony Gilby, Managing Director
Solomon Rowland, General Manager
Grant Thornton (Nominated Adviser)	[phone]
Samantha Harrison, Colin Aaronson, Harrison Clarke
Shore Capital (Broker)	[phone]
Jerry Keen, Toby Gibbs, Mark Percy
FlowComms Limited (Investor Relations)	[phone]
Sasha Sethi

Company Information

Tlou Energy is focused on delivering Gas-to-Power solutions in Botswana and southern Africa to alleviate some of the chronic power shortage in the region.  Tlou is developing projects using coal bed methane ("CBM") natural gas.  Botswana has a significant energy shortage and generally relies on expensive imported power and diesel generation to fulfil its power requirements.  As 100% owner of the most advanced gas project in the country, the Lesedi CBM Project, Tlou Energy provides investors with access to a compelling opportunity using domestic gas to produce power and displace expensive diesel and imported power.

The Company is listed on the Australian Securities Exchange, London's AIM market and the Botswana Stock Exchange and is led by an experienced Board, management and advisory team including individuals with successful track records in the CBM industry.

Since establishment, the Company has significantly de-risked the project in consideration of its goal to become a significant gas-to-power producer.  The Company flared its first gas in 2014, has a 100% interest in a Mining Licence and nine Prospecting Licences, covering an area of ~8,300Km² in total.  The Lesedi and Mamba Projects already benefit from significant independently certified 2P gas Reserves of ~41 BCF. In addition, 3P gas Reserves of ~427 BCF and Contingent Gas Resources of ~3,044 BCF provide significant additional potential.

The Company is planning an initial scalable gas-to-power project.  Following successful implementation of this first scalable project, the Company looks forward to evaluating longer-term prospects for the delivery of electricity generated from CBM in Botswana to neighbouring countries.

 

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