TIDMTLOU
RNS Number : 6375X
Tlou Energy Ltd
13 August 2018
13 August 2018
Tlou Energy Limited
("Tlou" or "the Company")
Operations Update and RFP bidders meeting
Tlou Energy Limited is pleased to provide an update on
preparations for the upcoming pilot production well program and the
pre-tender bidders meetings in relation to the Government of
Botswana's Request for Proposal ('RFP') for the development of up
to 100MW of Coal Bed Methane ('CBM') power plants in Botswana.
Key Points:
-- Equipment arriving onsite ahead of drilling of lateral and vertical pilot production wells;
-- Spudding of first well expected to occur in September once
critical long lead items are onsite;
-- Pre-tender bidders meeting was positive and Tlou is now
working towards submitting its proposal.
Pilot production program
The Company is scheduled to commence a pilot well drilling
program this quarter. The proposed pilot wells, referred to as
'dual lateral pods', consist of two lateral or horizontal wells
that intersect a vertical well, with up to three pods anticipated
to be drilled under the program.
The pods will be drilled in areas identified as being
potentially highly suited for initial project development, where
quality seismic and core-hole data exists. In addition, Tlou's
reserve certifiers have indicated that drilling of production pods
in a different orientation to existing wells has the potential to
enhance gas production rates. A key objective of the program is to
achieve enhanced gas flow rates in the area proposed for initial
project development. In addition, and if successful, the work
program could further de-risk the project and add to the Company's
independently certified gas reserves at the Lesedi CBM project.
Long lead items have been ordered and are due onsite in the near
term. Tlou has also purchased additional equipment for the program
to bring the operations more under the Company's control. This will
drive future operational efficiencies and cost savings. Tlou has
steadily built up the operational equipment it owns. These assets,
along with Tlou's experienced operations team, reduce the Company's
reliance on mobilising expensive third-party equipment and
personnel for drilling operations. This can also increase local
experience and create further employment opportunities. The
development of the CBM industry and creation of sustainable jobs
within Botswana is a key focus for the Company.
Spudding (commencement) of the first well under the planned
drilling program is expected in September. Following drilling of
the pods, wells will proceed to dewatering and, subject to
successful dewatering, gas production. Due to the current workload
in the field, planned core-hole drilling is now more likely to
begin following completion of the pilot production pods.
Pre-tender bidders' meeting
Botswana's Ministry of Mineral Resources Green Technology and
Energy Security ('the Ministry') has issued a Request for Proposal
('RFP') for development of up to 100MW of CBM fuelled power plants
in Botswana, as announced on 27 July 2018.
As part of this RFP, a compulsory pre-tender meeting with
representatives of the Procuring Department has taken place at the
Ministry's office. Tlou's management believes that the meeting was
positive and there appears to be continued government goodwill to
advance the project. Tlou requested clarification of some terms in
the RFP documents and were pleased with the responses received.
While the Company will submit a comprehensive bid, the RFP is a
very detailed and regulated process so there is no guarantee of
success. The Company will continue to push other objectives
including negotiating directly with potential off-takers and
becoming a member of the Southern African Power Pool.
The closing date for submission of a response to the RFP is 12
September 2018. Tlou's submission will outline an initial project
of up to 10MW of generation including project feasibility, proposed
field development, installation of power generation facilities and
supply of power into the grid. If successful in the RFP and
following implementation of the initial project, the Company would
look at expansion.
Tlou's Lesedi CBM project is well advanced, with significant CBM
gas reserves in place, environmental approval for upstream
development, and a Mining Licence which allows the Company to
commence development operations. Management considers that Tlou is
therefore ideally placed to deliver a project under the RFP process
should the application be successful.
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
----------------------
Colin Aaronson, Samantha Harrison,
Harrison Clarke
----------------------
Shore Capital (Broker) +44 (0) 207 408 4090
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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 8,300Km(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. 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.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
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