Government Releases Re-tender of 100MW RFP

RNS Number : 9814V

Tlou Energy Ltd

27 July 2018

 

27 July 2018

Tlou Energy Limited

("Tlou" or "the Company")

Government Releases Re-tender of 100MW RFP

Key Points:

·    Tlou is one of two companies to be invited to re-tender for the development of a maximum of 100MW CBM Fuelled Pilot Power Plants in Botswana;

·    A compulsory pre-tender meeting with the Botswana Government will take place on 9 August 2018;

·    The closing date for receipt of tender offers is 12 September 2018.

Retender of 100MW RFP

Earlier this year the Company received confirmation that Botswana's Ministry of Mineral Resources Green Technology and Energy Security ('the Ministry') has requested that the Request for Proposal (RFP) for Development of up to 100MW of CBM fuelled power plants in Botswana be re-tendered, with both Tlou and the other shortlisted party to be invited to submit a bid under a new re-tender process.  

The initial RFP was issued in early 2017 and Tlou submitted a detailed response to the Ministry in September 2017.  Tlou's submission outlined a staged development commencing with up to 10MW of generation as well as outlining project feasibility, proposed field development, installation of power generation facilities and supply of power into the grid in Botswana. 

Being the most advanced CBM project in Botswana, with 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 very pleased to receive the re-tender document and will now undertake a compressive review of the terms therein.

Tlou is one of two companies to be invited to re-tender for the development of a maximum of 100MW of CBM fuelled Pilot Power Plants in Botswana as an Independent Power Producer (IPP). The other company being invited to re-tender is a local Botswana company Sekaname (PTY) Ltd.

Pleasingly for Tlou, a compulsory pre-tender meeting with representatives of the Procuring Department will take place at the Botswana Ministry of Mineral Resources, Green Technology & Energy Security on 9^th August 2018.

The closing date for receipt of tender offers in 12^th September 2018.

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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