TIDMTLOU
RNS Number : 8496J
Tlou Energy Ltd
22 August 2019
22 August 2019
Tlou Energy Limited
("Tlou" or "the Company")
Lesedi Pods Achieve Sustained Gas Flows
Tlou Energy Limited, the ASX, AIM and BSE listed company focused
on delivering power in Botswana and southern Africa through the
development of coal bed methane (CBM) is delighted to announce that
sustained gas flow rates have been achieved at both the Lesedi 3
and Lesedi 4 production pods.
Highlights
-- Lesedi 3 and 4 have each achieved an initial sustained gas
flow of approximately 20 thousand cubic feet per day (Mcfd);
-- Rates are anticipated to increase steadily, leading to a peak and commercial flow rate;
-- First electricity sales are targeted for next year.
Production Update
The Lesedi gas production pods are performing strongly. As
planned, water rates in both pods have continued to decline, with
both Lesedi 3 and 4 production pods having successfully commenced
flowing sustained rates of gas.
Following completion of the first phase of production testing,
including initial dewatering, reaching critical gas desorption
point and commencing gas production, the pods are now producing
sustained gas flows with initial rates of approximately 20 Mcfd
from each pod. As with most new CBM developments this rate is
anticipated to steadily increase, following further reduction of
pressure in the coal and additional dewatering, with the aim to
reach a peak and commercial gas flow rate.
Lesedi 4 was drilled approximately one month after the Lesedi 3
pod, with a similar approach taken at both pods to drawdown
pressure to allow gas to flow in a controlled manner. The processes
being followed at both Lesedi gas production pods are expected to
lead to long-term sustained gas flows which should build further
over time.
The Company is very encouraged by production data and well
performance to date and look forward to providing further updates
in due course.
With CBM projects not yet established in this region, Tlou could
pioneer CBM development in the area. Successful results from this
project could potentially impact a whole new CBM basin in Botswana
and be a significant boost not only for Tlou, but for the whole
region, with the potential for Tlou to possibly supply power within
Botswana and also into neighbouring countries via the Southern
African Power Pool.
Roadmap to First Electricity Sales
The Company is pleased to outline its forward plan which,
subject to financing and operational results, targets finalising a
Power Purchase Agreement (PPA) and development financing later this
year, with first electricity sales potentially in the fourth
quarter of next year.
TLOU ENERGY FORWARD PLAN August 2019
3Q19 4Q19 1Q20 2Q20 3Q20 4Q20 Post 4Q20
* Gas flows from Lesedi 3P & 4P * Finalise PPA * Seismic (200km) * Start Poles & Wires * Generators & civils at Central Processing Facility * Target first electricity sales * Expansion to 10MW+
* Mamba Project drilling * Generation Licence Award * Reserve upgrade * Southern African Power Pool (SAPP) application * Boomslang Project EIS approval * SAPP membership approved
* Close development financing from Botswana * Boomslang drilling
------------------------------------------------------------ ----------------------------- ----------------------------------------------------------- --------------------------------------------------------------- ------------------------------------------- --------------------------
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
----------------------
Samantha Harrison, Colin Aaronson, Harrison
Clarke, Seamus Fricker
----------------------
Shore Capital (Broker) +44 (0) 207 408 4090
----------------------
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 imported power and diesel
generation to fulfil its electricity 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 electricity.
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 and
has a 100% interest over its Mining Licence and ten Prospecting
Licences covering an area of 9,300 Km(2) in total.
The Lesedi and Mamba Projects already benefit from significant
independently certified 2P gas Reserves of 41 BCF. In addition, 3P
gas Reserves of 427 BCF and Contingent Gas Resources of 3,043 BCF
provide significant additional potential. The Company's newest
licence area designated "Boomslang", is situated adjacent to the
Company's Lesedi project, and is located on-trend with the results
observed to date at the Lesedi project and is considered to be
highly prospective.
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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