Tlou Energy Ltd Interim Power Purchase Agreement (7402I)
April 03 2020 - 4:10AM
UK Regulatory
TIDMTLOU
RNS Number : 7402I
Tlou Energy Ltd
03 April 2020
3 April 2020
Tlou Energy Limited
("Tlou" or "the Company")
Interim Power Purchase Agreement
Tlou Energy Limited is an ASX, AIM and BSE listed company
focused on generating cleaner power in Botswana for supply into the
local and regional power markets.
Power Purchase Agreement (PPA)
The Company is delighted to announce that an interim 2MW CBM
Pilot PPA has been agreed between the Company and Botswana Power
Corporation (BPC). This interim PPA is now undergoing final
regulatory formalities. At the request of BPC, the commercial terms
of the PPA remain confidential. Agreement of this PPA is a major
step forward for Tlou and the Company would like to express thanks
to the BPC team for their assistance.
The Company remains in discussions with potential project
finance partners who have been waiting to see the interim PPA in
place, which facilitates connection to the power grid and first
revenue for the Company. A pathway to revenue generation is key for
financiers and once connected to the grid, expansion of the project
(and thereby increasing revenue) is seen as a relatively
straightforward and largely de-risked process.
The Company submitted a proposal to Botswana's Ministry of
Mineral Resources Green Technology and Energy Security (MMGE) in
2018 for the development of a 10MW CBM Gas-to-Power plant. The 10MW
proposal is separate to the 2MW interim PPA announced today. BPC
and MMGE continue to assess the 10MW proposal and will advise the
Company in due course.
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
-----------------
+44 (0)20 7383
Grant Thornton (Nominated Adviser) 5100
-----------------
Colin Aaronson, Harrison Clarke, Samantha Harrison,
Seamus Fricker
-----------------
+44 (0) 207 408
Shore Capital (Broker) 4090
-----------------
Jerry Keen, Toby Gibbs
-----------------
Company Information
Tlou Energy is focused on delivering Power solutions to Botswana
and southern Africa to alleviate some of the chronic power shortage
in the region. Tlou is currently developing projects using gas and
plans to combine this with solar power to provide a cleaner base
load power source.
Botswana has a significant energy shortage and generally relies
on imported power and diesel generation to fulfil its power
requirements. Tlou's Lesedi Power Project provides investors with
access to a compelling opportunity to displace expensive, carbon
intensive diesel and imported coal-fired electricity with a cleaner
and more environmentally friendly alternative.
In addition to plans for cleaner energy, the Company is also
committed to developing community projects in Botswana adding real
value to peoples' lives in a region with sparse services and where
few opportunities exist for the local population. This includes
work to assist communities to become self-sustaining, develop
business opportunities, improve access to education and create
opportunities for self-employment and wealth creation.
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.
The project is significantly de-risked. The Company produced its
first gas in 2014, has a Mining (or development) Licence valid to
2042 and 10 Prospecting (or exploration) Licences. The Company's
project acreage covers a vast area spanning approximately 9,300
Km(2) in total.
Tlou's 'Lesedi' and 'Mamba' projects already benefit from
significant independently certified 2P gas Reserves of 41 Billion
Cubic Feet (BCF). In addition, 3P gas Reserves of 427 BCF and
Contingent Gas Resources of 3,043 BCF provide significant
additional potential.
The Company is planning an initial scalable power project.
Following successful implementation of this first scalable project,
the Company looks forward to evaluating longer-term prospects for
the delivery of additional electricity to Botswana and to
neighbouring countries.
Forward-Looking Statements
This announcement may contain certain forward-looking
statements. Actual results may differ materially from those
projected or implied in any forward-looking statements. Such
forward-looking information involves risks and uncertainties that
could significantly affect expected results. No representation is
made that any of those statements or forecasts will come to pass or
that any forecast results will be achieved. You are cautioned not
to place any reliance on such statements or forecasts. Those
forward-looking and other statements speak only as at the date of
this announcement. Tlou Energy Limited undertakes no obligation to
update any forward-looking statements.
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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