REG - Tlou Energy Ltd - Transmission Line construction update

TLOU EnergyAnnouncement

23/05/2022 07:00

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RNS Number : 3525M  Tlou Energy Ltd  23 May 2022

 

23 May 2022

 

Tlou Energy Limited

("Tlou" or "the Company")

 

Transmission Line construction update

 

 

Construction activities for the transmission line to connect the Lesedi Power
Project ("Lesedi") to the Botswana power grid have commenced.

 

Zismo Engineering Pty Ltd ("Zismo") have completed their preliminary work and
bush clearing of the route is underway. Preliminary work included site
handover, assembling the project team and resources, mobilisation of plant and
equipment, line survey and design, pole structure modelling, and review and
approval by Tlou's Owners Engineer, Mott MacDonald.

 

Zismo has also commenced procurement of equipment which includes manufacture
of steel and wooden poles, cross-arms, line hardware, fittings, stay wire and
assemblies. Equipment will be delivered in batches, with the first delivery of
wooden poles expected next month.

 

Zismo's project site offices are set-up in Mogorosi village and a roving site
camp will be located at convenient locations along the transmission line
route.

 

 

Project activities

Work commenced with route preparation which includes bush clearing as
mentioned above, as well as installation of farm gates where required, line
pegging, inspection and approval.

 

Erection of poles will be performed in sections with work commencing on the
Serowe end of the line and working towards Lesedi. Work on the first section
is due to commence at the end of June and on section two around the end of
September 2022. The line is expected to use approximately 650 wooden poles and
80 steel structures involving excavation, positioning, assembly, dressing,
planting, backfilling and compacting, and thereafter stringing, tensioning and
regulation.  This will be followed by testing and commissioning and
ultimately line energisation.

 

Work on the transmission line is scheduled for completion in mid-2023, with
the substations at either end of the transmission line expected to be
completed in the second half of 2023. Sale of electricity can start
thereafter.

 

 

Tlou's Managing Director, Mr Tony Gilby commented, "It is great to have the
transmission line work underway in the field. Our team will be very busy
onsite over the coming months and I look forward to seeing the project
develop.

 

We are firmly on track to becoming a regional power producer in a market with
a huge power demand and at a time where worldwide demand for gas and cleaner
energy is growing significantly."

 

About the Lesedi Power Project

The Lesedi Power Project ("Lesedi") is located in Botswana's Central District,
approximately 100 Km from the existing electricity grid.

 

To connect Tlou's 100% owned gas field and proposed generation site at Lesedi
to the grid, a 100 Km, 66kV transmission line and supporting substations are
required. The line will join the existing grid near the town of Serowe. The
66kV line will be capable of carrying up to 25MW of power. Initial electricity
generated will be sold to Botswana Power Corporation, the national power
utility under an agreed 10MW Power Purchase Agreement (PPA). First revenue
under this PPA is expected in late 2023.

 

 

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

 Arden Partners (UK Broker)                       +44 (0) 20 7614 5900
 Simon Johnson, Antonio Bossi

 Public Relations
 Ashley Seller                                    +61 418 556 875

 

About Tlou

Tlou is developing energy solutions in Sub-Saharan Africa through gas-fired
power, solar power and hydrogen projects. The Company is listed on the ASX
(Australia), AIM (UK) and the BSE (Botswana). The Lesedi Power Project
("Lesedi") is 100% owned and is the Company's most advanced.  Tlou's
competitive advantages include our ability to drill cost effectively for gas,
our 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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