REG - Tlou Energy Ltd - Quarterly Activities Report
28/04/2023 07:00
For best results when printing this announcement, please click on link below:
http://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20230428:nRSb7879Xa&default-theme=true
RNS Number : 7879X Tlou Energy Ltd 28 April 2023
28 April 2023
Tlou Energy Limited
("Tlou" or "the Company")
Quarterly Activities Report for the quarter ended 31 March 2023
Highlights
Ø The 66KV overhead transmission line is steadily progressing
Ø Development of a purpose-built operations facility is continuing
Ø Substation construction scheduled to commence
Ø Production well drilling underway with Lesedi 6
Activities
Tlou Energy continues to have three key project areas referred to as:
§ Lesedi Project - focused on the development of gas to power development as
well as exploration and evaluation.
§ Mamba Project - focused on exploration and evaluation.
§ Boomslang Project - focused on exploration and evaluation.
Lesedi Project
The Lesedi project is Tlou's most advanced. It is currently developing a 10MW
gas to power project. The Lesedi project area has four Prospecting Licenses
(PL) and a Production Licence which is the key focus area for the development
of Tlou's independently certified gas reserves and contingent resources. All
licences held under this project area are valid. The table below summarises
the status of the licences:
Licence Expiry Status
Production Licence 2017/18L Aug-42 Current
PL001/2004 Sep-23 Current
PL003/2004 Sep-23 Current
PL035/2000 Mar- 25 Current
PL037/2000 Mar-25 Current
PL renewal applications are submitted three months prior to expiration.
Tlou Energy's initial 10MW Power Purchase Agreement (PPA) is part of a 100MW
Request for Proposal for the development of CBM power projects in Botswana.
Tlou previously responded to a separate request for proposal for the supply
and delivery of natural gas to the Orapa power plant in Botswana. The
Company's proposal was not successful.
Gas to Power Project
The first electricity to be generated at Lesedi, will go towards satisfying
the 10MW PPA with Botswana Power Corporation (BPC) the national power utility.
Tlou is among the first independent power producers to secure a power purchase
agreement with the utility.
To this end, the Lesedi project currently has several parts of the development
process underway including the construction of transmission lines,
substations, a field operations facility and generation site as well as
production well drilling.
Transmission Line Construction
The Lesedi project is approximately 100km from the nearest BPC substation
connection in Serowe. In efforts to connect onto the national grid, the
Company is undergoing the construction and installation of a 100km 66kV
transmission line. This, together with the ongoing drilling program can enable
the Company to connect and provide electricity into Botswana's power network.
The construction of the 66kV transmission line is being carried out by Zismo
Engineering Pty Ltd (Zismo) and is expected to be completed around mid-2023.
Zismo is a local engineering procurement construction company that specialises
in industrial engineering. Progress to end of March 2023 was estimated at
approximately 64%, with planting of wooden poles almost complete, steel pole
structures now being erected and over 20km of line stringing complete.
Substation Construction
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 BPC substation at Serowe. This work will be led by
South African based OptiPower, a division of Murray & Roberts Ltd. The
pre-construction and design works have been completed and physical
construction of the substations is scheduled to begin very soon with the
project anticipated to be completed in early 2024.
Lesedi Operations Facility
Work has advanced on a purpose-built operations facility for the initial 10MW
development and to allow for project expansion thereafter. This project is
being undertaken by Tlou through its consultant contractor African Gas
Services (AGS).
Drilling and Gas production
The Lesedi 4 production pod continues to produce gas. A key focus in the
coming year is to drill more production wells for the 10MW project.
Post quarter end, the Company began drilling the Lesedi 6 production pod.
Lesedi 6 is planned to be the first of a series of new pods, funds permitting,
that the Company will drill as part of the 10MW gas to power project. Lesedi 6
will comprise one vertical production well intersected by two lateral wells
drilled horizontally through the target reservoir section for several hundred
metres.
****
Mamba Project
The Mamba project is in the exploration and evaluation phase with further
operations required on the operating licences. It consists of five PL's
covering an area of approximately 4,500 Km(2). The Mamba area is situated
adjacent to Lesedi. In the event of successful drilling results at Mamba, it
is envisioned that this area would be developed as a separate project from
Lesedi. The Mamba area provides the Company with flexibility and
optionality.
The status of the Mamba licences is as follows:
Licence Expiry Status
PL 237/2014 September 2023 Current
PL 238/2014 September 2023 Current
PL 239/2014 September 2023 Current
PL 240/2014 September 2023 Current
PL 241/2014 September 2023 Current
PL renewal applications are submitted three months prior to expiration.
****
Boomslang Project
Prospecting Licence, PL011/2019 designated "Boomslang", is approximately 1,000
Km(2) and is situated adjacent to the Company's existing licences. To date,
the Company has not carried out ground operations in the Boomslang area. The
status of the Boomslang licence is as follows:
Licence Expiry Status
PL 011/2019 June 2024 Current
PL renewal applications are submitted three months prior to expiration.
****
Cash Position
At the end of the quarter the Company had ~A$3.54m cash on hand (unaudited).
The aggregate value of payments to related parties and their associates of
A$339k for the quarter (shown in item 6.1 of the attached Quarterly Cashflow
Report) relates to directors' salaries and fees (including tax and
superannuation payments made on their behalf) and office rent.
The Company is significantly advanced in relation to raising further capital.
In addition, Dr Ian Campbell (Tlou's largest shareholder) has offered a $2m
loan to the Company if required. The exact terms of the loan are being
finalised. Subject to any regulatory approval the agreement is expected to be
signed in the coming days. Once the agreement is executed the funds will be
available to draw down immediately if necessary.
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.
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.
Appendix 5B
Mining exploration entity or oil and gas exploration entity
quarterly cash flow report
Name of entity
Tlou Energy Limited
ABN Quarter ended ("current quarter")
79 136 739 967 31 March 2023
Consolidated statement of cash flows Current quarter Year to date (9 months)
$A'000
$A'000
1. Cash flows from operating activities
1.1 Receipts from customers
1.2 Payments for
(a) exploration & evaluation
(b) development (114) (248)
(c) production
(d) staff costs (441) (896)
(e) administration and corporate costs (490) (1,534)
1.3 Dividends received (see note 3)
1.4 Interest received 9 15
1.5 Interest and other costs of finance paid
1.6 Income taxes paid
1.7 Government grants and tax incentives
1.8 Other (provide details if material) 181 347
1.9 Net cash from / (used in) operating activities (855) (2,316)
2. Cash flows from investing activities
2.1 Payments to acquire or for:
(a) entities
(b) tenements
(c) property, plant and equipment (584) (1217)
(d) exploration & evaluation (1,627) (3,528)
(e) investments
(f) other non-current assets (1,653) (4,519)
2.2 Proceeds from the disposal of:
(a) entities
(b) tenements
(c) property, plant and equipment
(d) investments
(e) other non-current assets
2.3 Cash flows from loans to other entities
2.4 Dividends received (see note 3)
2.5 Other (provide details if material)
2.6 Net cash from / (used in) investing activities (3,864) (9,264)
3. Cash flows from financing activities 3,267 8,268
3.1 Proceeds from issues of equity securities (excluding convertible debt
securities)
3.2 Proceeds from issue of convertible debt securities
3.3 Proceeds from exercise of options
3.4 Transaction costs related to issues of equity securities or convertible debt
securities
3.5 Proceeds from borrowings
3.6 Repayment of borrowings
3.7 Transaction costs related to loans and borrowings
3.8 Dividends paid
3.9 Other (provide details if material) (4) (15)
3.10 Net cash from / (used in) financing activities 3,263 8,253
4. Net increase / (decrease) in cash and cash equivalents for the period
4.1 Cash and cash equivalents at beginning of period 6,156 7,875
4.2 Net cash from / (used in) operating activities (item 1.9 above) (855) (2,316)
4.3 Net cash from / (used in) investing activities (item 2.6 above) (3,864) (9,264)
4.4 Net cash from / (used in) financing activities (item 3.10 above) 3,263 8,253
4.5 Effect of movement in exchange rates on cash held (1,161) (1,009)
4.6 Cash and cash equivalents at end of period 3,540 3,540
5. Reconciliation of cash and cash equivalents Current quarter Previous quarter
at the end of the quarter (as shown in the consolidated statement of cash flows) to the related items in the accounts
$A'000
$A'000
5.1 Bank balances 3,540 6,165
5.2 Call deposits
5.3 Bank overdrafts
5.4 Other (provide details)
5.5 Cash and cash equivalents at end of quarter (should equal item 4.6 above) 3,540 6,165
6. Payments to related parties of the entity and their associates Current quarter
$A'000
6.1 Aggregate amount of payments to related parties and their associates included 339
in item 1
6.2 Aggregate amount of payments to related parties and their associates included
in item 2
Note: if any amounts are shown in items 6.1 or 6.2, your quarterly activity
report must include a description of, and an explanation for, such payments.
7. Financing facilities Total facility amount at quarter end Amount drawn at quarter end
Note: the term "facility' includes all forms of financing arrangements available to the entity.
$A'000
$A'000
Add notes as necessary for an understanding of the sources of finance available to the entity.
7.1 Loan facilities
7.2 Credit standby arrangements
7.3 Other (please specify)
7.4 Total financing facilities
7.5 Unused financing facilities available at quarter end
7.6 Include in the box below a description of each facility above, including the
lender, interest rate, maturity date and whether it is secured or unsecured.
If any additional financing facilities have been entered into or are proposed
to be entered into after quarter end, include a note providing details of
those facilities as well.
8. Estimated cash available for future operating activities $A'000
8.1 Net cash from / (used in) operating activities (item 1.9) 855
8.2 (Payments for exploration & evaluation classified as investing activities) 1,627
(item 2.1(d))
8.3 Total relevant outgoings (item 8.1 + item 8.2) 2,481
8.4 Cash and cash equivalents at quarter end (item 4.6) 3,540
8.5 Unused finance facilities available at quarter end (item 7.5) -
8.6 Total available funding (item 8.4 + item 8.5) 3,540
8.7 Estimated quarters of funding available (item 8.6 divided by item 8.3) 1.4
No
te
:
if
th
e
en
ti
ty
ha
s
re
po
rt
ed
po
si
ti
ve
re
le
va
nt
ou
tg
oi
ng
s
(i
e
a
ne
t
ca
sh
in
fl
ow
)
in
it
em
8
.3
,
an
sw
er
it
em
8
.7
as
"N
/A
".
Ot
he
rw
is
e,
a
fi
gu
re
fo
r
th
e
es
ti
ma
te
d
qu
ar
te
rs
of
fu
nd
in
g
av
ai
la
bl
e
mu
st
be
in
cl
ud
ed
in
it
em
8.
7.
8.8 If item 8.7 is less than 2 quarters, please provide answers to the following
questions:
8.8.1 Does the entity expect that it will continue to have the current
level of net operating cash flows for the time being and, if not, why not?
Answer: Yes
8.8.2 Has the entity taken any steps, or does it propose to take any
steps, to raise further cash to fund its operations and, if so, what are those
steps and how likely does it believe that they will be successful?
Answer: The Company is significantly advanced in relation to raising further
capital. In addition, Dr Ian Campbell (Tlou's largest shareholder) has offered
a $2m loan to the Company if required. The exact terms of the loan are being
finalised. Subject to any regulatory approval the agreement is expected to be
signed in the coming days. Once the agreement is executed the funds will be
available to draw down immediately if necessary.
8.8.3 Does the entity expect to be able to continue its operations and
to meet its business objectives and, if so, on what basis?
Answer: With funds available under the loan agreement and negotiations ongoing
with investors in relation to other potential sources of finance the Company
expects to be able to meet its objectives.
Note: where item 8.7 is less than 2 quarters, all of questions 8.8.1, 8.8.2
and 8.8.3 above must be answered.
Compliance statement
1 This statement has been prepared in accordance with accounting
standards and policies which comply with Listing Rule 19.11A.
2 This statement gives a true and fair view of the matters
disclosed.
Date:
.....28/04/2023...............................................................
Authorised by: ....By the
Board.............................................................
(Name of body or officer authorising release - see note 4)
Notes
1. This quarterly cash flow report and the accompanying
activity report provide a basis for informing the market about the entity's
activities for the past quarter, how they have been financed and the effect
this has had on its cash position. An entity that wishes to disclose
additional information over and above the minimum required under the Listing
Rules is encouraged to do so.
2. If this quarterly cash flow report has been prepared in
accordance with Australian Accounting Standards, the definitions in, and
provisions of, AASB 6: Exploration for and Evaluation of Mineral Resources and
AASB 107: Statement of Cash Flows apply to this report. If this quarterly cash
flow report has been prepared in accordance with other accounting standards
agreed by ASX pursuant to Listing Rule 19.11A, the corresponding equivalent
standards apply to this report.
3. Dividends received may be classified either as cash flows
from operating activities or cash flows from investing activities, depending
on the accounting policy of the entity.
4. If this report has been authorised for release to the
market by your board of directors, you can insert here: "By the board". If it
has been authorised for release to the market by a committee of your board of
directors, you can insert here: "By the [name of board committee - eg Audit
and Risk Committee]". If it has been authorised for release to the market by a
disclosure committee, you can insert here: "By the Disclosure Committee".
5. If this report has been authorised for release to the
market by your board of directors and you wish to hold yourself out as
complying with recommendation 4.2 of the ASX Corporate Governance Council's
Corporate Governance Principles and Recommendations, the board should have
received a declaration from its CEO and CFO that, in their opinion, the
financial records of the entity have been properly maintained, that this
report complies with the appropriate accounting standards and gives a true and
fair view of the cash flows of the entity, and that their opinion has been
formed on the basis of a sound system of risk management and internal control
which is operating effectively.
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 (mailto:rns@lseg.com)
or visit
www.rns.com (http://www.rns.com/)
.
RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our
Privacy Policy (https://www.lseg.com/privacy-and-cookie-policy)
. END UPDNKOBNDBKBDQBRecent news on TLOU Energy
See all newsREG - AIM Tlou Energy Ltd - Cancellation - Tlou Energy Limited
AnnouncementREG - FTSE Russell Tlou Energy Ltd - Tlou Energy
AnnouncementREG - Tlou Energy Ltd - Result of AGM and Update on AIM Cancellation
AnnouncementREG - Tlou Energy Ltd - Lesedi Project Update
AnnouncementREG - Tlou Energy Ltd - Director/PDMR Shareholding
Announcement