Tlou Energy
Limited
("Tlou"
or "the Company")
Project Update: Progress
Towards Electricity Generation
Highlights
Ø Lesedi 4P and 6P continue to
flare gas as dewatering progresses
Ø Completion of the crucial
66kV transmission line, connecting Tlou's Lesedi project directly
to both Botswana's power grid and the broader Southern African
Power Pool
Ø Connection to Serowe
substation achieved, Lesedi no longer isolated
from primary Botswana electricity
market
Ø Lesedi substation which will
connect Tlou's power generators to the transmission line now
approximately 38% complete
Lesedi production wells
The Lesedi 4P and 6P production
wells are continuing to flow gas as the water level is being
gradually lowered to just above the coal. Once the wells stabilise
and stop surging (gas and water), gas flow rates will be measured.
Tlou is confident that with the in-house knowledge gained from
recent drilling efforts, extracting more and more gas out of the
coal reservoir will become progressively simpler and more cost
effective due to economies of scale.
Transmission line
The 66kV electricity transmission
line connecting Tlou's Lesedi power generation site to the power
grid has been constructed and the line has been connected to the
Serowe substation.
Any minor finishing works and the
addition of switchgear at the Serowe substation will be done prior
to the line being energised. The line will be energised as soon as
the substation at Lesedi is complete which is expected around the
middle of the year subject to funding.
The transmission line is a vital
element of the Lesedi project. With the completion of the
transmission line, the Lesedi project is no longer isolated from
Botswana's electricity market and is now connected to the broader
Southern African Power Pool.
Lesedi Substation
The Lesedi substation, which will
connect Tlou's power generators to the transmission line, is
approximately 38% complete. Installation of the earth mat is
complete with the control room currently being
constructed.
Generators
Gas fired generators will be
installed adjacent to the Lesedi substation on Tlou's 100% owned
land. Consultant engineers are evaluating generator options and
obtaining quotes from suppliers.
Funding
The Company
is in discussions with several strategic parties to secure the
remaining funds required for project
completion. The aim is to secure funding this quarter. The Company
remains committed to delivering electricity into the grid at the
earliest opportunity, with power sales contracted under the
existing 10MW Power Purchase Agreement with Botswana Power
Corporation.
By
Authority of the Board of Directors
Mr. Anthony Gilby
Managing Director
****
For further information regarding
this announcement please contact:
Tlou Energy
Limited
|
+61 7 3040
9084
|
Tony Gilby,
Managing Director
|
|
Solomon
Rowland, General Manager
|
|
|
|
Grant
Thornton (Nominated Adviser)
|
+44 (0)20
7383 5100
|
Harrison
Clarke, Colin Aaronson, Ciara
Donnelly
|
|
|
|
Zeus Capital (UK
Broker)
|
+44 (0)20
3829 5000
|
Simon Johnson
|
|
|
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Investor Relations
|
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Ashley Seller (Australia)
|
+61 418 556
875
|
FlowComms Ltd - Sasha Sethi
(UK)
|
+44 (0)
7891 677 441
|
About Tlou
Tlou is developing energy solutions
in Sub-Saharan Africa through gas-fired power and ancillary
projects. The Company is listed on the ASX (Australia), AIM (UK)
and the BSE (Botswana). The Lesedi Gas-to-Power Project ("Lesedi")
is 100% owned and is the Company's most advanced project. Tlou's
competitive advantages include the ability to drill cost
effectively for gas, operational experience and Lesedi's strategic
location in relation to energy customers. All major government
approvals have been achieved.
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. Save as required by any
applicable law or regulation, Tlou Energy Limited undertakes no
obligation to update any forward-looking statements.