REG - Tlou Energy Ltd - Lesedi Project Update

TLOU EnergyAnnouncement

07/02/2022 07:00

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RNS Number : 8152A  Tlou Energy Ltd  07 February 2022

7 February 2022

 

Tlou Energy Limited

("Tlou" or "the Company")

 

Award of 10MW Generation Licence and Project Update

 

 

Tlou is developing clean energy solutions for Botswana and the sub-Saharan
region.

Key points

Ø Transmission Line construction set to commence

Ø 10MW Generation Licence awarded

 

Transmission Line

Tlou is pleased to announce that work is set to commence on the transmission
line and substations to connect the Lesedi power project ("Lesedi") to the
electricity grid.

 

As announced late last year, funding has been secured for the construction of
the transmission line and substations from our largest shareholder (Botswana
Public Officers Pension Fund) and since that time the relevant contractors
have been updating their tenders to reflect any cost adjustments since their
original submissions. This process is largely complete and following final
signatures the work is set to commence.

 

Project Construction

The Lesedi project is located approximately 100Km from the existing
electricity grid. The development will include the erection of wooden poles
fitted with an overhead 66kV transmission line. In addition, substations will
be installed at Lesedi and close to Serowe. The Lesedi substation will
integrate the generation assets with the transmission line and the Serowe
substation will tie in with Botswana Power Corporation's existing
infrastructure.

The transmission line route has been surveyed and full environmental approval
is in place. The line will predominantly cross flat, arid terrain with the
last ~5 Km being through the outskirts of the Serowe township.

 

As previously announced, experienced contractors are being used for the
project with construction of the overhead lines by Zismo Engineering (Pty)
Ltd ("Zismo") and by OptiPower for the construction of substations.

 

·    Zismo is a Botswana based Electrical Engineering, Contracting,
Automation and Refurbishment Company. Further information is available at
http://zismoengineering.com.

 

·    OptiPower is a division of Murray & Roberts Ltd. Based in South
Africa, OptiPower's core business includes the construction of substations,
power lines and fibre optic networks. See https://optipower.co.za for further
details.

 

10MW Generation Licence

The Company recently received a 10MW Electricity Generation License from the
Botswana Energy Regulatory Authority (BERA).

 

The licence has a term of 15 years and is for the generation of 10MW of power
at the Lesedi project for sale to Botswana Power Corporation (BPC).

 

Project Timetable

A series of key milestones have been achieved in the past year allowing the
Company to progress into the development phase and towards first revenue. A
tentative timetable towards this target is set out below. This is not an
exhaustive list and is subject to change and funding.

 

Proposed Timetable (TL = Transmission Line; SS = Substations; H2 = Hydrogen)

 Date  Detail
 1Q22  TL & SS - Mobilisation of plant & equipment, site establishment,
       procurement and engineering

 2Q22  H2 - Hydrogen & Solid Carbon Protype unit to be completed
       TL & SS - Commence installation of electricity poles
       Gas-to-power - Ground works on Central Processing Facility

 3Q22  H2 - Hydrogen & Solid Carbon Prototype to arrive at Lesedi
       SS - Civil works, steel structures assembly, installation, and earthing
       Solar - Purchase and installation of Solar PV

 4Q22  SS -Electrical and mechanical works
       TL - Stringing, tension, and regulation
       Gas-to-power - Purchase of power generators
       H2 - Initial results from the Hydrogen & Solid Carbon Prototype

 1H23  TL & SS - Practical completion
       TL & SS - Testing and commissioning

 2H23  TL & SS - Handover to Tlou
       Gas-to-power - Sale of first electricity to BPC

 

Lesedi Gas production

The Lesedi gas production wells continue to steadily perform. The Lesedi 3P
("L3") production pod was shut-in for approximately 18 months during the
pandemic and was recently brought back into production following the
resumption of full operations. Since resumption, L3 has already recommenced
flowing gas which is a very positive indicator and the Lesedi 4P ("L4")
production pod also continues to flow sustained gas. Cumulative flow rates are
encouraging and we look forward to providing substantive numbers to the market
as soon as practicable.

 

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 retained EU law version of the
Market Abuse Regulation (EU) No. 596/2014 (the "UK MAR") which is part of UK
law by virtue of the European Union (withdrawal) Act 2018. The information is
disclosed in accordance with the Company's obligations under Article 17 of the
UK MAR. 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 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

 Shore Capital (Broker)                           +44 (0)20 7408 4090
 Toby Gibbs, John More

 Public Relations
 Ashley Seller                                    +61 418 556 875

 

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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