REG - Tlou Energy Ltd - Power Purchase Agreement Update

TLOU EnergyAnnouncement

20/02/2020 07:00

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RNS Number : 5456D  Tlou Energy Ltd  20 February 2020

 

20 February 2020

 

Tlou Energy Limited

("Tlou" or "the Company")

 

Power Purchase Agreement Update

 

 

Tlou Energy Limited is an ASX, AIM and BSE listed company focused on
generating power in Botswana for supply into the local and regional power
market.

 

The Company has received written confirmation from the Ministry of Mineral
Resources, Green Technology and Energy Security (the Ministry) of its support
for the ongoing tender process.  The Company looks forward to working with
BPC and the Ministry to finalise the Power Purchase Agreement in due course.

 

Further details of the correspondence received is as follows:

 

DEVELOPMENT OF A MAXIMUM OF 100MW QF COAL BED METHANE (CBM)

FUELLED POWER PLANTS IN BOTSWANA BY TLOU ENERGY

 

The above subject matter refers.

 

The Government of Botswana is committed to seeing the successful negotiation
with your company on the Power Purchase Agreement (PPA) for the supply of
electricity from your coal bed methane (CBM) project.

 

We are at an advanced stage of finalizing the contract for the engagement of
the Transactional Advisors/consultants that will assist with the negotiations
of the project agreements. Recognising that this has taken a long time, and to
demonstrate government's commitment, we have agreed to get into discussions
for a temporary Power Purchase Agreement that would enable your organization
to provide power on a pilot/proof of concept approach while negotiations for
the full PPA are ongoing.

 

Botswana Power Corporation (BPC) has been charged with the responsibility of
driving the discussion and signing an agreement with your company, subject to
the necessary approvals in the BPC structures.

 

Thank you for the fruitful meeting we had with your company and BPC early this
week, to commence the discussions on the temporary supply arrangement

 

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.

 

By Authority of the Board of Directors

Mr. Anthony Gilby

Managing Director

 

 

Company Information

Tlou Energy is focused on delivering Power solutions in Botswana and southern
Africa to alleviate some of the chronic power shortage in the region.  Tlou
is currently developing projects using coal bed methane (CBM) natural gas and
plans to combine this with solar power to provide a clean base load power
source.

 

Botswana has a significant energy shortage and generally relies on imported
power and diesel generation to fulfil its power requirements.  Tlou's Lesedi
Power Project provides investors with access to a compelling opportunity to
displace expensive, carbon intensive diesel and imported electricity with a
local clean, green and environmentally friendly alternative.

 

In addition to plans for clean energy, the Company is also committed to
developing community projects in Botswana adding real value to peoples' lives
in a region with sparse services and where few opportunities exist for the
local population.  This includes work to assist communities to become
self-sustaining, develop business opportunities, improve access to education,
and create opportunities for self-employment and wealth creation.

 

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.

 

The project is significantly de-risked.  The Company produced its first gas
in 2014, has a Mining (or development) Licence valid to 2042 and 10
Prospecting (or exploration) Licences.  The Company's project acreage covers
a vast area spanning approximately 9,300 Km(2) in total.

 

Tlou's '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 is planning an initial scalable power project.  Following
successful implementation of this first scalable project, the Company looks
forward to evaluating longer-term prospects for the delivery of additional
electricity in Botswana and to neighbouring countries.

 

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.  Tlou
Energy Limited undertakes no obligation to update any forward-looking
statements.

 

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