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Tlou Energy Ltd (TLOU)

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Wednesday 10 October, 2018

Tlou Energy Ltd

Tender Submitted

RNS Number : 6317D
Tlou Energy Ltd
10 October 2018
 

10 October 2018

 

Tlou Energy Limited

 

("Tlou" or "the Company")

 

Tender Submitted

 

 

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 submitted its response to the Request for Proposal ("RFP") from Botswana's Ministry of Mineral Resources, Green Technology and Energy Security ("the Ministry") for the development of up to 100MW of CBM fuelled pilot power plants in Botswana.

 

Key Points:

·    Tlou's proposal involves the development of a CBM Gas-to-Power project in stages with an initial development of up to 10MW;

·     The submission will be assessed based on eligibility, technical and funding criteria;

·     An indicative date for receipt of a response from the Ministry is not yet known.

 

Tlou's Managing Director Tony Gilby said, "We are delighted that the re-submission of the tender has been completed and look forward to a response from the Ministry.  We have detailed what we believe is a very compelling and robust proposal.  If successful this project can help start a new CBM industry in Botswana, create further employment, provide a much-needed local clean power source, and bring a return for Tlou investors.

 

Tlou is well placed, as the leading CBM company in the region, to be able to deliver the project outlined in the submission and we look forward to working closely with the Government to make it a success.  I would like to thank all our staff and consultants for their time an effort working on this project. 

 

Our drilling program is due to commence very soon and I will provide an update on this in the very near term."

 

Initial gas-to-power project

Tlou is planning a gas-to-power project whereby gas from the Company's Lesedi CBM project will be used for power generation, and this power sold into the power market within Botswana and/or across the Southern African Power Pool (SAPP).

 

An initial development of up to 10MW is planned.  This will start with the first 2MW of power which can be expanded as further drilling is conducted and additional gas becomes available.  With significant gas reserves already in place, the Company can readily expand upon successful implementation of the initial project.

 

The Lesedi CBM project will require connection to the local power grid.  This connection is planned to be made at the town of Serowe, approximately 100 Km from the Lesedi CBM project.  A draft transmission line route has been determined with negotiations ongoing with the regional and local land boards and the environmental impact assessment approval process continuing.

 

In addition to selling power through the RFP process, should that be successful; the Company is also in discussions with groups in Europe and China with interests in developing Compressed Natural Gas or mini-LNG facilities.   The development of a fertilizer plant using Tlou's gas has also been proposed.  These discussions and proposals are at an early stage so the viability of these potential projects is uncertain at present.

 

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

+61 7 3012 9793

Tony Gilby, Managing Director

 

Solomon Rowland, General Manager

 

 

 

Grant Thornton (Nominated Adviser)

+44 (0)20 7383 5100

Samantha Harrison, Colin Aaronson, Harrison Clarke

 

 

 

Shore Capital (Broker)

+44 (0) 207 408 4090

Jerry Keen, Toby Gibbs, Mark Percy

 

 

 

FlowComms Limited (Investor Relations)

+44 (0) 7891 677 441

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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