REG - Tlou Energy Ltd - Transmission Line construction update

TLOU EnergyAnnouncement

13/09/2022 07:00

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RNS Number : 2371Z  Tlou Energy Ltd  13 September 2022

 

13 September 2022

 

Tlou Energy Limited

("Tlou" or "the Company")

 

Transmission Line construction update

 

 

Tlou is constructing a coal bed methane (CBM) extraction and power generation
plant at Lesedi, west of Serowe in Botswana. A 66kV transmission line and
associated substations will connect the plant to the Botswana Power
Corporation (BPC) grid at Serowe. The grid connection project is divided into
two project parts; (i) the 66kV overhead transmission line, and (ii) the
substation works at both ends of the line.

 

The 66kV transmission line construction contract between Tlou and Zismo
Engineering was awarded on the 2 March 2022 and commenced in April. The
contract is expected to take approximately 15 months to complete. The
substation works tender has been awarded to OptiPower, a division of Murray
& Roberts Ltd. The substation contract has not yet been signed and will be
done once additional funding is in place.

 

Transmission Line project activities

Overall progress achieved is currently 11% which is up from 8% reported last
month. The planned target was 17% indicating a slippage of 6%. Progress to
date and some issues that have arisen are outlined below:

 

·    Line survey is 96% complete. The remainder relates to the steel pole
section.

·    Bush clearing is at 60%, delayed but without impact on program.

·    Line pegging and inspection at 50%. Delays incurred because of other
services on the servitude (right of way) such as water pipelines and crossing
low voltage powerlines. All being attended to.

·    Pole dropping at required locations along the route is at 42%.

·    Pole dressing (adding required equipment to poles) is only partially
complete because of delays in delivery of U-bolts.

·    Discussions were required with BPC in relation to an 11kV line that
has been built across the Tlou 66kV servitude. BPC have proposed to move their
line out of the servitude. This work is not expected to cause a delay as it
can be completed while other parts of the project are ongoing.

·    A requirement to add pole savers (to provide added protection) to the
wooden poles at the request of BPC. This is at the discretion of the engineer
and had not been raised as an issue during the planning, design and
procurement stages of the project. This will delay the planting of poles.

·    Procurement has also suffered delays with line hardware manufacturing
resulting in delays to commence pole dressing and planting.

 

The slippage to date may be recovered in the coming months. Procurement and
other issues outside the Company's control could delay the project further
which will be advised in further updates if necessary. However, at this time
the transmission line section should remain close to the target completion
date of mid-2023.

 

Lesedi 3P production well

The Company has been producing gas at its Lesedi 3P and Lesedi 4P production
wells. The Company has taken the decision to temporarily shut in the Lesedi 3P
well as sufficient data exists from this well and there is no need to incur
further production costs at this time. The well can be brought back into
production as required. Gas production at Lesedi 4P is planned to continue.

 

About the Lesedi Power Project

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

 

To connect Tlou's 100% owned gas field and proposed generation site at Lesedi
to the grid, a 100km, 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).

 

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

 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 Gas-to-Power Project
("Lesedi") is 100% owned and is the Company's most advanced.  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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