REG - Tlou Energy Ltd - Transmission Line Contract Signed

TLOU EnergyAnnouncement

15/03/2022 07:00

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RNS Number : 7537E  Tlou Energy Ltd  15 March 2022

15 March 2022

 

Tlou Energy Limited

("Tlou" or "the Company")

 

Transmission Line Contract Signed

 

 

The Company is pleased to confirm that the contract for the construction of
the transmission line to connect the Lesedi Power Project to the Botswana's
electricity grid has been signed.

 

Transmission Line Construction

The Lesedi Power Project ("Lesedi") is located approximately 100 Km from the
existing electricity grid in Botswana. The first stage of development will be
the erection of wooden poles fitted with an overhead 66kV transmission line,
capable of supplying up to 25MW of power into the grid.

The line will commence at Lesedi and run across predominantly flat, arid
terrain. The final ~5 Km traverse the outskirts of the Serowe township, where
the line will join the existing grid.

Zismo Engineering Pty Ltd ("Zismo") has been engaged to construct the
transmission line. Based in Botswana, Zismo is an experienced, electrical
engineering, contracting, automation and refurbishment company.

Zismo expect to mobilise plant and equipment onsite in the coming weeks. The
project is expected to take approximately 15 months to complete. The Company
will provide further updates as the line progresses.

 

Tlou's Managing Director, Mr Tony Gilby commented, "Commencement of
transmission line construction represents a new and exciting phase for the
Company aimed at delivering on our huge gas-to-power potential and starting
the monetisation process for our considerable gas reserves.

We very much look forward to working with Zismo on transmission line
construction and achieving first revenue.

It has taken a long time but what has been achieved to this point is
outstanding. We are extremely grateful to our stakeholders and investors for
staying the course.

Having secured the first tranche of BPOPF funds allowing us to get Zismo
started on the transmission line we are now progressing additional power
off-takers as well as exploring further ways of monetising our enormous gas
reserves.

The existing two production pods continue to flow gas and perform in line with
expectations given these are only two pods in a very large basin. Additional
wells should assist the dewatering process and result in higher gas flow
rates.

Tlou has 100% ownership of a very large quantity of gas which will become
increasingly valuable with time as a cleaner and reliable energy source in
this part of Africa.

Step by step, we are making solid progress towards becoming a leading clean
energy supplier in the region."

 

Substation Construction

In addition to the overhead lines, substations will be installed at Lesedi and
Serowe. The Lesedi substation will integrate the generation assets with the
transmission line and the Serowe substation will tie in with Botswana Power
Corporation's existing infrastructure. This work will be completed by
OptiPower, a division of Murray & Roberts Ltd.

The substation contract is due to be signed later, with completion scheduled
to tie in with completion of the overhead lines.

 

By Authority of the Board of Directors

Mr. Anthony Gilby

Managing Director

 

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.

****

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 (Broker)                          +44 (0) 20 7614 5900
 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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