Tlou Energy Ltd Response to Government Request for Proposal Submit (2979R)

TIDMTLOU

RNS Number : 2979R

Tlou Energy Ltd

20 September 2017

20 September 2017

Tlou Energy Limited

("Tlou" or "the Company")

Response to Government Request for Proposal Submitted

Tlou Energy Limited, the AIM and ASX listed company focused on delivering power in Botswana and southern Africa through the development of coal bed methane ("CBM"), has submitted its response to the Request for Proposal ("RFP") from Botswana's Ministry of Mineral Resources, Green Technology and Energy Security ("the Ministry") for the development of up to 100MW of CBM fuelled pilot power plants in Botswana.

Key points

Ø Tlou's proposal was submitted as planned prior to the deadline of 20 September 2017, and was accepted by the Ministry;

Ø The proposal involves the development of CBM Gas to Power in an incremental manner;

Ø The submission will be assessed based on eligibility, technical and funding criteria;

Ø Tlou is one of two companies who submitted a response to the RFP;

Ø An indicative date for receipt of a response on whether the proposal has been successful or unsuccessful is not yet known;

Ø Mamba Prospecting Licences renewed.

Tlou's Managing Director Tony Gilby said, "Preparation and submission of documentation for the response to the government's request has been a mammoth task, taking many months to complete. The submission has described Tlou's planned project in detail as well as outlining the benefits the project can bring to Botswana both directly and indirectly. With CBM gas reserves, from which we are currently generating power in the field, upstream environmental approval and a mining licence in place, I believe Tlou is well placed, as the leading CBM company in the country, to be able to deliver the project outlined in the submission and I look forward to working with the Government to make it happen.

I would like to thank all our staff and consultants who have performed so diligently on this project over the past number of months for their time and commitment."

Request for Proposal for CBM Power Project

Earlier this year, the Company received a detailed Request for Proposal from the Ministry for the development of up to 100MW of CBM fuelled pilot power plants in Botswana. This proposal assists in the development of a CBM gas industry in the country and can create a new market for Tlou's independently-certified gas reserves and significant contingent gas resources of 3.2 trillion cubic feet (3C). The submission to the RFP will be assessed based on conditions including, eligibility, technical and funding criteria. The Tlou submission outlined a staged development commencing with up to 10MW of generation as well as outlining project feasibility, proposed field development, installation of power generation facilities and supply of power into the grid in Botswana as well as operating and managing the project.

If Tlou's submission response is successful, this will provide an ideal pathway towards a power purchase agreement. Once an initial development is completed, Tlou Energy's gas field will be connected to the regional grid, thereby opening the possibility for the Company to provide power across the southern African region, via the Southern African Power Pool. No indication has yet been received regarding when a decision will be made on whether the submission has been successful or not.

Update on Mamba Permits

The Mamba project consists of five CBM prospecting licences in Botswana covering an area of approximately 4,500km(2) . The Mamba area is considered to be highly prospective being situated adjacent to Tlou's Lesedi CBM Project and being on-trend with the encouraging results observed at Lesedi to date. In the event of a gas field development by Tlou, the Mamba area provides the Company with considerable flexibility and optionality.

Renewal applications were submitted for the Mamba licences in March 2017. The Company has received confirmation that the renewal applications for all five prospecting licences has been successful and have been renewed up to 30 June 2019.

For further information regarding this announcement please contact:

 
 Tlou Energy Limited                    [phone] 
------------------------------------  --------------------- 
 Tony Gilby, Managing Director 
------------------------------------  --------------------- 
 Solomon Rowland, Company Secretary 
------------------------------------  --------------------- 
 
 Grant Thornton (Nominated 
  Adviser)                              [phone] 
------------------------------------  --------------------- 
 Samantha Harrison, Colin Aaronson, 
  Harrison Clarke 
------------------------------------  --------------------- 
 
                                        [phone] 
 Shore Capital (Joint Broker)            4090 
------------------------------------  --------------------- 
 Jerry Keen, Mark Percy, Toby 
  Gibbs 
------------------------------------  --------------------- 
 
 Optiva Securities Limited 
  (Joint Broker)                        [phone] 
------------------------------------  --------------------- 
 Jeremy King, Christian Dennis 
------------------------------------  --------------------- 
 
 St Brides Partners Limited             [phone] 
  (Public Relations)                     1177 
------------------------------------  --------------------- 
 Lottie Brocklehurst, Megan 
  Dennison, Susie Geliher 
------------------------------------  --------------------- 
 
 FlowComms Limited (Investor            [phone] 
  Relations)                             441 
------------------------------------  --------------------- 
 Sasha Sethi 
------------------------------------  --------------------- 
 

Company Information

Tlou Energy is an AIM and ASX listed company focused on delivering power in Botswana through the development of coal bed methane ("CBM") gas. Botswana has a severe energy shortage and is currently relying on expensive imported power and diesel generation to deliver its requirements. As the 100% owners of the most advanced gas project in the country, the Lesedi CBM Project, Tlou Energy provides investors with access to a compelling immediate and longer-term opportunity using domestic gas to produce power and displace expensive diesel and imported electricity.

The Company is led by an experienced Board, management and advisory team including individuals with successful track records in the Australian CBM industry.

Since establishment in 2009, the Company has significantly de-risked the project in consideration of its goal to become a significant gas-to-power producer. The Company has the most advanced CBM project in Botswana and flared its first gas in 2014. It holds a Mining Licence and nine Prospecting Licences, covering an area of 8,300Km(2) in total. The Lesedi Project already benefits from significant independently certified Contingent Gas Resources of 3.2 trillion cubic feet (3C) and independently certified Gas Reserves.

The Company is planning an initial scalable gas-to-power project in Botswana. Following successful implementation of this first scalable project, the Company plans to expand to provide further power to Botswana and the southern African region.

This information is provided by RNS

The company news service from the London Stock Exchange

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September 20, 2017 06:30 ET (10:30 GMT)