Tlou Energy Limited, the AIM, ASX and BSE listed company focused on delivering power in Botswana and Southern Africa through the development of coal bed methane (CBM) projects, is pleased to announce its 2019 results.
Highlights
· Production wells drilled successfully and now producing sustained gas flows at the Lesedi CBM project;
· Environmental approval secured for the Company’s planned downstream development, all environmental approvals are now in place to commence commercial development;
· The Company has been selected as a preferred bidder for a CBM gas-to-power proposal in Botswana.
The Annual Report and Consolidated Financial Statements for the year ended 30 June 2019 are available on the Company’s website http://tlouenergy.com/reports.
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.
****
For further information regarding this announcement please contact:
Tlou Energy Limited | +61 7 3012 9793 |
Tony Gilby, Managing Director | |
Solomon Rowland, General Manager | |
Grant Thornton (Nominated Adviser) | +44 (0)20 7383 5100 |
Samantha Harrison, Colin Aaronson, Harrison Clarke, Seamus Fricker | |
Shore Capital (Broker) | +44 (0) 207 408 4090 |
Jerry Keen, Toby Gibbs, Mark Percy | |
FlowComms Limited (Investor Relations) | +44 (0) 7891 677 441 |
Sasha Sethi |
Chairman’s letter
Dear Shareholders,
We have made excellent progress towards establishing ourselves as a key power player in Botswana, culminating in May 2019 on receiving written confirmation from the government of Botswana that we have been chosen as a preferred bidder for the development of a Coal Bed Methane (CBM) gas-to-power plant in Botswana. This was a key target during the year, as we work towards our goal of becoming a regional power provider in southern Africa through the development of our CBM assets.
We are privileged to have the support of the forward-thinking government of Botswana, which announced in 2016 that CBM, a relatively clean source of energy and more competitively priced than solar and diesel, is to be included as part of the country’s forward plan to combat power deficiency.
In October 2018, the Company submitted its proposal for development of a pilot CBM gas-to-power project in response to the Request for Proposal (RFP) issued by the Ministry of Mineral Resources, Green Technology and Energy Security. The submission, which was assessed on eligibility, technical and financial criteria, outlined a staged development commencing with up to 10MW of power generation and included the required connection into Botswana’s national power distribution network. With the Company selected as a preferred bidder for this project, Tlou is now in the final stage of the process, being negotiations with the government on a Power Purchase Agreement (PPA) ahead of commencing the development work.
The Company has also received environmental approval for up to 20MW of CBM power generation including the drilling of 200 production pods, a 66 kV Transmission Line and a Solar Farm up to 20MW. With this approval, the Company has the required environmental approvals to commence commercial development.
During the last 12 months, Tlou has completed a work program including drilling of two dual lateral development wells in the Lesedi project. The wells (Lesedi 3 and 4) are located adjacent to the proposed central gas gathering and power generation facility and are currently producing gas.
In April 2019, the Company successfully completed targeted private placements to sophisticated investors in Botswana and Australia. Following the placements, local ownership increased significantly, with the Botswana Public Officers Pension Fund (BPOPF) now the Company’s largest shareholder.
This has been a highly active year for Tlou, following confirmation that the Company has been chosen as a preferred bidder for the development of the one of the first commercial CBM gas-to-power projects in Botswana, approval of the required Environmental Impact Statement and the successful drilling of two dual lateral development wells. We look forward to another successful year ahead.
With CBM development not previously established in Botswana, Tlou is pioneering CBM development in the region. Successful results from Tlou’s projects could potentially impact a whole new CBM basin and be a significant boost not only for Tlou, but for the whole region.
I would like to take this opportunity to thank the Tlou Board, management, field staff and advisers, and most importantly our shareholders for their continued support during this exciting time for Tlou.
Yours faithfully,
Martin McIver
Chairman
Read the Full Document Here: https://www.londonstockexchange.com/exchange/news/market-news/market-news-detail/TLOU/14201900.html tlou-energy