Tlou Energy Ltd - Confirmation of Tender approval
("Tlou" or "the Company")
Confirmation of Tender approval
· The Company will now work with the government to finalise all the project agreements
· An enormous step forward for the Company in the development of its
Tlou's Managing Director, Mr
Request for Proposal (RFP)
The Company's submission outlined a staged development commencing with up to 10MW of generation as well as outlining project feasibility, proposed field development, installation of power generation facilities and supply of power into the grid in
The RFP was assessed across three different criteria, Compliance, Technical and Financial. Of the competing bidders, Tlou's proposal received the highest pass mark for the compliance and technical stage. The financial stage required the calculation of a Levelised Cost of Energy (LCOE) for the project, with Tlou's proposal having the most competitive LCOE. This was possible due to Tlou's ability to operate efficiently using very experienced personnel coupled with the geological knowledge gained over many years of operating in
An initial staged 10MW development was selected to facilitate the success of the downstream project by requiring relatively minimal up-front capex. This reduces risk and therefore limits the downside for Tlou, its shareholders and the government.
Tlou used the electricity guide price provided by the government in the Company's tender of approximately USD
Tlou considers the first 10MW as a pilot power generation project. Revenues from this project could facilitate rapid future expansion, which could be enormous based on the Contingent Gas Resources already in place at Tlou's project acreage.
The transmission line component of the downstream power generation project represents the bulk of the capex required and will be designed to transmit upwards of 20MW of electricity into the grid.
The RFP approval is another very significant milestone for the company which include:
· Establishing the first Independently Certified Gas Reserves in the country with enough 2P Gas Reserves already in place to complete the proposed 10MW power project;
· Flowing gas from the Selemo Pilot for approximately 2 years;
· Generating electricity from the Selemo Pilot gas for several months;
· Being awarded the first
· Obtaining upstream environmental approval for over 200 production wells, water handling, seismic, gas gathering pipelines and a processing facility;
· Successfully acquiring the first seismic program in the country specifically targeting CBM gas;
· Successfully completing two gas production pods (Lesedi 3 & 4) in early 2019;
· Obtaining downstream environmental approval for 20MW of gas fired power generation coupled with 20MW of solar plus a transmission line to connect to the grid.
· Drilled numerous wells since Tlou operations commenced;
· Tlou holds approximately 9,000 Km2 100% owned licence area, with enormous scope for Gas Reserve expansion;
· The Company has built an experienced in-county operational workforce;
· Landholder agreements are either in-place or being finalised;
The Company's cash balance was approximately AUD
Downstream funding primarily relates to transmission lines, which will be designed to transmit in excess of 20MW of electricity from the proposed power generation facility to the Serowe sub-station. This has the potential to make future generation expansion both rapid and low cost.
Tlou has already received indications of funding support from a number of existing strategic investors as well as from
Upcoming work program/milestones:
· Flow gas (post de-watering) from the recently completed production wells;
· Conduct further operations across the Lesedi, Mamba and Boomslang project areas;
· Finalise the funding package for the downstream development.
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:
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+61 7 3012 9793
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+44 (0)20 7383 5100
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Shore Capital (Broker)
+44 (0) 207 408 4090
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+44 (0) 7891 677 441
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The Company is listed on the
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 and has a 100% interest over its
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
This information is provided by RNS, the news service of the
Quick facts: Tlou Energy Limited
Market Cap: £13.06 m
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