Change to RFP submission date

RNS Number : 0257A

Tlou Energy Ltd

06 September 2018

 

6 September 2018

Tlou Energy Limited

("Tlou" or "the Company")

Change to 100 MW Tender closing date

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, has received confirmation that the closing date for receipt of proposals under the 100 MW Tender (outlined further below) has been extended to Wednesday, 10 October 2018.

The original closing date was 12 September 2018.  The extension was not at Tlou's request, as the Company is on track to submit a comprehensive proposal.  Based on the original date the Company would have expected an initial response to its proposal in Q1 2019.  Regardless of the extension, the Company still expects an initial response to be received in early 2019.

100 MW Tender

Earlier this year, Botswana's Ministry of Mineral Resources Green Technology and Energy Security ('the Ministry') issued a Request for Proposal ('RFP') for Development of up to 100 MW of CBM fuelled power plants in Botswana.  This RFP was issued to two parties, Tlou and a local Botswana based company, Sekaname (Pty) Ltd.

Being the most advanced CBM project in Botswana, with significant gas reserves in place, having environmental approval for upstream development and a mining licence secured allowing the Company to commence development operations, the Company is in an excellent position to submit a comprehensive proposal with a project that is achievable and can bring vital power and employment to the region.

Tlou plans to submit a response to the RFP outlining an initial staged development commencing with up to 10 MW of generation including project feasibility, field development plans, installation of power generation facilities and supply of power into the grid.  If successful in the RFP and following successful installation of the initial 10 MW, the Company would investigate further expansion (up to 100 MW and above) subject to demand and suitable power purchase agreements.

The information contained within this announcement is deemed to constitute inside information as stipulated under the Market Abuse Regulations (EU) No. 596/2014. Upon the publication of this announcement, this inside information is now considered to be in the public domain.

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, holds a Mining Licence and nine Prospecting Licences, covering an area of ~8,300Km² in total, and the Lesedi Project already benefits from significant independently certified Contingent Gas Resources of ~3.2 trillion cubic feet (3C) and independently certified Gas Reserves of ~261 billion cubic feet (3P).

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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