REG - Tlou Energy Ltd - Drilling and Operational Update

TLOU EnergyAnnouncement

14/06/2023 07:00

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RNS Number : 6172C  Tlou Energy Ltd  14 June 2023

 

14 June 2023

 

Tlou Energy Limited

("Tlou" or "the Company")

 

Drilling and Operations update

 

 

Ø Drilling of Lesedi 6 vertical well and lateral well top-hole sections
complete

Ø Core-hole completed and coal samples acquired

Ø Overhead transmission lines 73% complete

Ø Entitlement offer remains open to eligible shareholders, partially
underwritten up to A$5m

 

Production Wells

The Company is currently drilling the Lesedi 6 gas production pod. The pod
will comprise one vertical production well (Lesedi 6P) intersected by two
lateral wells (Lesedi 6A and Lesedi 6B) drilled horizontally through the
target reservoir section for several hundred metres.

 

Lesedi 6P - Vertical Production Well

This well has been drilled to a depth of 589m and intersected 6m of the target
lower Morupule coal. Well casing was cemented in place, with fiberglass casing
at the target coal seam underreamed to expose the coal to the well bore to
facilitate dewatering and gas flow.

 

Lesedi 6A and Lesedi 6B - Lateral Wells

The top hole (or vertical) sections of Lesedi 6A and Lesedi 6B have been
drilled. Both have been drilled to a depth of 150m and cased with steel casing
and cemented. Following cementing, the wells were drilled a further 2m in
preparation for running the directional tools which are required to complete
the lateral section of the well.

 

Core-hole drilling

The objective of the core-hole is to provide additional geological control in
the vicinity of the Lesedi 6 gas production pod.

 

In addition to providing coal and gas content data, the core-hole accurately
determined the top and bottom of the target coal seam close to where the
lateral section of Lesedi 6A and Lesedi 6B will enter the coal. This is
important data for drilling of the lateral section of each well.

 

The core-hole was completed and logged after reaching a total depth of 535m
and intersecting 6m of coal. 18 coal samples were taken and placed in
desorption canisters for further analysis.

 

Transmission Lines

Work on the transmission lines to connect Tlou's Lesedi power project to the
existing power grid is progressing. Overall progress to date is ~73%. This
work is expected to be completed in 3Q23.

 

The 100 Km line includes planting wooden and steel pole structures. Most of
the wooden poles have been erected and work has begun on the steel structures.
Line stringing is also underway with ~30km of the phase conductor and ~67km of
the GSW earth wire complete.

 

Lesedi to Serowe Transmission Line

Substations

Substations are required at either end of the transmission line, one to tie
Tlou's generators to the transmission line at Lesedi and another to integrate
the line with the existing Botswana Power Corporation (BPC) substation at
Serowe.

 

OptiPower, a division of Murray & Roberts Ltd has been contracted to
complete this work. OptiPower has established a site in Serowe and appointed
subcontractors for detailed engineering design and civils works with
geotechnical assessments, soil resistivity and topographical surveys now
complete. The substations are expected to be commissioned in 2Q24.

 

Operations and generation facility

Work is continuing on a purpose-built operations facility for the initial 10MW
development and to allow for project expansion thereafter. This project is
being managed by African Gas Services on behalf of Tlou and it is expected to
be completed later this year.

 

This facility will also include the power generation site and the Company has
engaged external advisors to provide technical and commercial advice relating
to site based power generation design, procurement, construction and
operation.

 

Entitlement Offer

The Company continues to source funding to develop the power project including
an Entitlement Offer to eligible shareholders to raise up to a maximum of
approximately A$10,645,473 (£5,855,010, BWP92,615,612). The Entitlement Offer
is partially underwritten up to A$5m. Full details of the offer are available
on the Company's website https://tlouenergy.com/reports

 

 

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

 Public Relations
 Ashley Seller                                    +61 418 556 875

 

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.

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