Licence renewal

RNS Number : 2817B

Tlou Energy Ltd

03 April 2017

 

3 April 2017

Tlou Energy Limited

("Tlou" or "the Company")

Prospecting Licences Renewed

Tlou Energy Limited, the AIM and ASX listed company focused on delivering power in Botswana and southern Africa through the development of coal bed methane ("CBM") is pleased to announce that three of its key prospecting licences have been successfully renewed for a further two-year term.

Lesedi Project Area - Licence Renewals

The Lesedi project consists of five CBM prospecting licences in Botswana covering an area of approximately 3,800km².  These licences are currently the focal point for the Company's operations and include the Selemo project area where the company has been producing gas for an extended period. 

Renewal applications for three key prospecting licences (PL 001, 002, 003/2004) were submitted to Botswana's Ministry of Minerals, Energy and Water Resources ("MMEWR") in December 2016. MMEWR has confirmed that these licences have been renewed for a further two-year term to 31 March 2019.  The area covered by these licences is of significant importance to Tlou and subject to results of the ongoing field operations the Company may convert part of these prospecting licence areas to a Mining Licence during the term of the current renewal period.  A Mining Licence is required prior to the commencement of full field development. 

The status of all five Lesedi Area Prospecting Licences is as follows:

Prospecting Licence	Expiry	Status
PL 001/2004	March 2019	Current
PL 002/2004	March 2019	Current
PL 003/2004	March 2019	Current
PL 035/2000	September 2018	Current
PL 037/2000	September 2018	Current

For further information regarding this announcement please contact:

Tlou Energy Limited	[phone]
Tony Gilby, Managing Director
Solomon Rowland, Company Secretary
Grant Thornton (Nominated Adviser)	[phone]
Samantha Harrison, Colin Aaronson, Harrison Clarke
Shore Capital (Joint Broker)	[phone]
Jerry Keen, Mark Percy, Toby Gibbs
Optiva Securities Limited (Joint Broker)	[phone]
Jeremy King, Christian Dennis
St Brides Partners Limited (Public Relations)	[phone]
Elisabeth Cowell, Lottie Brocklehurst
FlowComms Limited (Investor Relations)	[phone]
Sasha Sethi

Company Information

Tlou Energy is an AIM and ASX listed company focused on delivering power in Botswana through the development of coal bed methane ('CBM') projects.  Botswana has a severe energy shortage and is currently relying on expensive imported power and diesel generation to deliver its requirements.  However, as the 100% owners of the most advanced gas project in the country, the Lesedi CBM Project, Tlou Energy provides investors with access to a compelling immediate and longer term opportunity using domestic gas to produce power and displace the expensive diesel and import market.

The Company is led by an experienced Board, management and advisory team including individuals with successful track records in the Australian CBM industry.

Since establishment in 2009 the Company has significantly de-risked the project in consideration of its goal to become a significant gas to power producer.  The Company has the most advanced CBM project in Botswana and flared its first gas in 2014.  It holds 10 Prospecting Licences covering an area of ~8,300Km² 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.

The Company is planning an initial scalable gas-to-power project in Botswana.  Following successful implementation of this first scalable project, the Company plans to expand to provide further power to Botswana and the southern African region.

 

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