REG - Tlou Energy Ltd - Lesedi Project Update

TLOU EnergyAnnouncement

23/02/2024 07:00

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RNS Number : 1836E  Tlou Energy Ltd  23 February 2024

 

23 February 2024

 

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

 Investor Relations
 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.

 

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