Tlou Energy Ltd Core-hole Drilling Operations Update (7184Z)
December 19 2017 - 1:00AM
UK Regulatory
TIDMTLOU
RNS Number : 7184Z
Tlou Energy Ltd
19 December 2017
19 December 2017
Tlou Energy Limited
("Tlou" or "the Company")
Core-hole Drilling Operations Update
Tlou Energy Limited, the company focused on developing
Gas-to-Power projects in Botswana and southern Africa through the
development of coal bed methane ("CBM") natural gas, is pleased to
provide an update on the progress of its operations at the Lesedi
and Mamba CBM Projects in Botswana.
Highlights
Ø Core-hole drilling has been completed at two locations in the
Lesedi project area
Ø The operations have been conducted in line with the Company's
approved Environmental Impact Statement
Ø A third core-hole is proposed to be completed in early 2018 in
the Mamba project area
Ø Coal samples have been taken from the completed core-holes and
are being analysed alongside seismic survey data with initial
results expected in early 2018
Ø Core-hole information will be used for planning of first phase
of development drilling in 2018
Ø Results will provide data for potential expansion of Gas
Reserves and Contingent Resources
Tlou's Managing Director Tony Gilby said, "The lower Morupule
coal seam intersected in the two recently completed core-holes
appears to be of similar thickness and quality to other core-holes
previously drilled by Tlou. The drilling program has been very well
managed by our operations team and we are delighted to have two
core-holes completed. The information from the drilling program,
along with the recently completed seismic survey, is being sent to
our independent reserve certifiers with the objective of expanding
the existing Gas Reserves and Contingent Resources in early
2018."
Core-hole Drilling
The Company planned a core-hole drilling program to follow the
recently completed seismic survey over the Company's Lesedi and
Mamba projects. In consultation with SRK Consulting (Australasia)
Pty Ltd ("SRK"), Tlou's geological consultants and independent
reserve certifiers, the Company identified a series of locations
using the newly acquired seismic data, for further evaluation by
drilling of new core-holes. Two new core-holes have now been
completed in the Lesedi project area. This work has been conducted
on budget and completed safely within the terms of the Company's
approved Environmental Impact Statement.
Following coring, desorption samples were taken and placed into
desorption baths in the field with readings being taken and sent to
Weatherford Laboratories in Brisbane. Once this analysis is
complete, the physical samples will be sent to Weatherford for
further analysis.
Key benefits of the core-hole drilling program include:
1. Confirming coal quality, thickness, and gas content in a
previously un-drilled area of the Lesedi project;
2. Providing new information to SRK to facilitate the expansion
of the Company's Gas Reserves and Contingent Resources. An increase
in the Gas Reserves and Contingent Resources could significantly
increase the Company's valuation;
3. The additional data will be used to determine the optimum
location for initial project development as well as high-grading
additional areas for further development both within the Lesedi and
Mamba project areas. This provides the Company with additional
future optionality.
Initial project development is planned to commence in 2018,
subject to the results of the Company's application to the
Government of Botswana to develop up to 100MW of CBM fuelled power
generation.
Results of the desorption testing are expected in Q1 2018 and
will be taken into account by SRK for expansion of the Company's
Gas Reserves and Contingent Resources. The Company is planning a
further core-hole in the Mamba project area and an initial dual
lateral development pod for early 2018 with the location to be
determined following consultation with SRK.
**ENDS**
For further information regarding this announcement please
contact:
Tlou Energy Limited +61 7 3012 9793
------------------------------------ ---------------------
Tony Gilby, Managing Director
------------------------------------ ---------------------
Solomon Rowland, Company Secretary
------------------------------------ ---------------------
Grant Thornton (Nominated
Adviser) +44 (0)20 7383 5100
------------------------------------ ---------------------
Samantha Harrison, Colin Aaronson,
Harrison Clarke
------------------------------------ ---------------------
+44 (0) 207 408
Shore Capital (Joint Broker) 4090
------------------------------------ ---------------------
Jerry Keen, Mark Percy, Toby
Gibbs
------------------------------------ ---------------------
Optiva Securities Limited
(Joint Broker) +44 (0)20 3137 1904
------------------------------------ ---------------------
Jeremy King, Christian Dennis
------------------------------------ ---------------------
St Brides Partners Limited +44 (0) 20 7236
(Public Relations) 1177
------------------------------------ ---------------------
Lottie Wadham, Megan Dennison,
Susie Geliher
------------------------------------ ---------------------
FlowComms Limited (Investor +44 (0) 7891 677
Relations) 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 8,300Km(2) 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.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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