TIDMTLOU
RNS Number : 8825T
Tlou Energy Ltd
30 March 2021
30 March 2021
Tlou Energy Limited
("Tlou" or "the Company")
Boomslang Project - Environmental approval
Tlou Energy Limited is an ASX, AIM and BSE listed company
focused on delivering cleaner electricity in Botswana and southern
Africa using gas and solar power. The Company's first proposed
development is the Lesedi Power Project ("Lesedi") which includes
the construction of a power station and sale of electricity in
Botswana. In addition, the Company has two large exploration areas
designated Mamba and Boomslang.
Boomslang Project - Environmental Impact Statement (EIS)
Approved
Botswana's Department of Environmental Affairs (DEA) has
approved the EIS for Tlou's Boomslang project. The Boomslang
Prospecting Licence PL011/2019 is located adjacent to the Company's
Lesedi power project.
All proposed project activities outlined under the EIS have been
authorised. These include:
-- Drilling of core holes and stratigraphy boreholes;
-- Conducting seismic and geomagnetic surveys;
-- Pilot testing pods, monitoring wells and evaporation ponds; and
-- Installation of pumping monitoring, gathering lines and evaluation equipment.
Tlou believes the Boomslang project can complement the more
mature Lesedi and Mamba projects, particularly given the presence
of the highly prospective Serowe coal seam. The Lesedi and Mamba
projects primarily target the deeper Morupule coal seam.
EIS approval for exploration of the Boomslang permit (Tlou 100%)
represents another key milestone for the Company. Successful
exploration and development of the Boomslang area could facilitate
Tlou's longer term strategy of expansion beyond the current Lesedi
project area.
Lesedi Project - Commencement of Development
The Company plans to commence work on the development of the
Lesedi project as soon as possible. Key stages to achieve first
revenue are as follows:
1. Construction of the transmission line to connect Lesedi to the existing power grid;
2. Installation of substations at the Lesedi site and at Serowe to integrate with the grid;
3. Installation of generation assets at Lesedi;
4. Commissioning and testing;
5. Sale of first power.
Following the recent capital raising totalling GBP2.6m, the
Company now has funds in place to allow the transmission line
construction to commence. Crucially, the raising has allowed the
Company to control the timing of project construction and it can
now commence work on the transmission line regardless of the time
it takes for other current funding negotiations to be
completed.
Those funding negotiations continue to move forward. The leading
candidate has confirmed that the proposal has progressed to the
next stage including an assessment by specialist advisors and due
diligence. This is a precursor to making a final investment
decision on a $10m finance facility for Tlou.
Transmission Line Tender
As outlined above, the first phase of development will be the
construction of a transmission line to connect to the electricity
grid. The line will be 100 Km in length with a 66kV overhead cable.
The route has been surveyed and full environmental approval is in
place. The line will predominantly cross relatively flat, arid
terrain with the last 5 Km being through the outskirts of the
Serowe township.
The Company issued tenders for the construction of the
transmission line and substations and expect to award the tender
early next quarter. The leading candidates are located in Botswana
and South Africa. Therefore, access to Botswana to commence the
work should not be an issue even if the pandemic persists. It is
further noted that Tlou may stand to benefit from the relatively
free movement over the border from South Africa to Botswana should
goods and services be required from outside the country (subject to
health checks and quarantine procedures in the event of positive
COVID-19 tests).
10MW Power Purchase Agreement (PPA)
The Company continues to have regular correspondence with the
advisors assisting the Government of Botswana to conclude the 10MW
PPA process. The advisors have confirmed that they are reviewing
project documents including the draft PPA. The Company is focused
on progressing this to a conclusion as soon as possible. The
Company has already secured a 2MW pilot PPA with Botswana Power
Corporation and has a grid connection agreement in place.
Orapa Gas Supply Tender
Botswana Power Corporation has issued a tender for supply and
delivery of natural gas to the Orapa 90MW power plant, further
demonstrating that Botswana is serious about getting on with
business this year. The power plant provides power to the Orapa
diamond mine - one of the largest diamond mines in the world. Orapa
is currently running on intermittent grid power and emergency
diesel generation. Anglo American PLC, owner of the De Beers group,
and co-owner of Orapa along with the Government of Botswana, has
publicly stated their objective to move to cleaner fuel sources.
Gas from Tlou's nearby discoveries could be ideally suited to
assist with meeting their cleaner energy objectives. The Company
will review the tender documentation and subject to meeting the
eligibility criteria plan to submit a response. The tender closes
in May.
Tlou's Managing Director Tony Gilby said: "We are looking
forward to a productive 2021 with significant progress in key areas
of the Company's business being achieved so far. We have great
expectations for the Serowe CBM play within the 100% owned
Boomslang permit area and subject to funding we can drill to
evaluate it with environmental approval secured.
Tlou's flagship Lesedi project continues to advance towards
first revenue with funds secured to commence the transmission line
linking it to the existing electricity grid. Project funding to
install generating capacity and fund more work on the ground is
anticipated in the near future.
It is noted that gas developments within the highly prospective
Mamba and Boomslang permit areas can be readily tied back to the
Lesedi power station and in time could provide additional revenue
generating opportunities for the Company. Our environmental
approvals include gas gathering lines.
We have a strong pipeline of projects that are gradually coming
to fruition. The recent capital raise has allowed Tlou to better
control our project development and provide a firm foundation for
near term growth."
By Authority of the Board of Directors
Mr. Anthony Gilby
Managing Director
The information contained within this announcement is deemed to
constitute inside information as stipulated under the Market Abuse
Regulation (EU) No. 596/2014 which is part of UK law by virtue of
the European Union (withdrawal) Act 2018. 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, Seamus Fricker
---------------------
Shore Capital (Broker) +44 (0)20 7408 4090
---------------------
Jerry Keen, Toby Gibbs, John More
---------------------
Vigo Communications (PR) +44 (0)20 7390 0230
---------------------
Patrick d'Ancona, Chris McMahon, Simon
Woods
---------------------
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.
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END
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