Seismic Survey Update

RNS Number : 3990U

Tlou Energy Ltd

24 October 2017

 

24 October 2017

Tlou Energy Limited

("Tlou" or "the Company")

Seismic Survey Update

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 provide an update on the progress of the 2D Seismic program underway across the Lesedi and Mamba CBM Projects in Botswana.

Highlights

Ø Survey commenced on 8 October 2017

Ø Approximately 40% of the work has been completed

Ø Project is on time and on budget

Ø Excellent quality data obtained

Tlou's Managing Director Tony Gilby said, "The seismic survey is progressing well and we are very pleased with the data obtained to date.  Data from the survey is being integrated with existing data with a view to expanding the Lesedi and Mamba Gas Reserves and Contingent Resources.  The addition of further Reserves and Contingent Resources de-risks the project even further and could add significantly to the value to the Company.  The Seismic data will also enable us to locate the optimum drill locations for core and first phase development wells."

Seismic Survey

The seismic survey comprises ~250km of new data over the Company's Lesedi and Mamba projects including over part of the Mining Licence area.  It is being conducted by Velseis Pty Ltd ("Velseis"), an Australian seismic acquisition and processing company that provides a fully integrated range of seismic technologies.

The acquisition of data commenced on 8 October 2017 and has progressed steadily since, with approximately 40% of the project survey completed to date.  The acquisition involves specially designed vehicles that are fitted with a vibrating plate which transmits acoustic signals into the ground at specified locations. The data is recorded via highly sensitive geophones placed along the seismic line and then processed by specialised software to image the target coal horizons at depth.  Data quality appears to be excellent to date with good imaging of the coal target section being achieved. 

As the Data is acquired it is collated and re-processed by Velseis and provided to the Company's geological consultants and independent reserve certifiers, SRK Consulting (Australasia) Pty Ltd for analysis and interpretation.  The data is very useful for the reserve certifier to gain increased confidence in target coal distribution within Tlou's Lesedi and Mamba permit areas.

The survey is expected to continue into November 2017 and once complete, the equipment will be demobilised from site, the seismic lines rehabilitated and an acquisition report prepared. This will be followed by final interpretation of the data set and completion of an interpretation report.  The seismic data can also be integrated with existing aeromagnetic data to provide a clearer picture of the sub-surface geology.  The integrated data set will assist in the expansion of Gas Reserves and Contingent Resources and to identify areas for the drilling of core wells and first phase development wells.

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]
Lottie Wadham, Megan Dennison, Susie Geliher
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") gas.  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 expensive diesel and imported power.

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 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 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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