Tlou Energy Ltd Seismic Survey (0076T)

TIDMTLOU

RNS Number : 0076T

Tlou Energy Ltd

09 October 2017

9 October 2017

Tlou Energy Limited

("Tlou" or "the Company")

Seismic Survey

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"), is pleased to announce that work has commenced on the planned 250KM 2D seismic program across its 100% owned Lesedi CBM Project ("Lesedi") and the adjacent Mamba Permit.

Highlights

Ø 250 km 2D seismic program will target areas considered to be highly prospective for the addition of Gas Reserves

Ø Aim to increase Gas Reserves at both the Lesedi and Mamba projects

Ø Results will facilitate location of vertical drill holes to further confirm Gas volumes in the ground

Ø Positive results will further de-risk the Lesedi project

Tlou's Managing Director Tony Gilby said, "Tlou is extremely pleased to have the Seismic program running and to be working with Velseis, who are highly experienced in this area. This survey will give us the opportunity to expand our Gas Reserves and Resources as we progress towards developing the first CBM gas to power project in Botswana.

The seismic survey will assist in the next step of our plan to drill more wells by providing us with enhanced knowledge of the sub-surface in our project areas. Results from subsequent core well analysis may also lead to further Gas Reserve and Resources and consequently add further value to Tlou.

We look forward to updating the market as the seismic program progresses."

Further Information

Seismic Survey

The seismic survey will stretch across 250km of the Company's Lesedi and Mamba projects including over part of the Mining Licence area.

The Company have identified potential gas reservoir compartments outside the currently mapped Gas Reserve areas. These compartments have relatively sparse geological control other than the existing aeromagnetic data so new seismic data could demonstrate that continuity of gassy coal exists and this could lead to expanded Gas Reserves and/or Resources.

The seismic lines have been inspected and cleared and equipment and safety checks have been completed in advance of commencement of the acquisition of the 2D data. The acquisition involves specially designed tractors that are fitted with a vibrating plate, which transmits a frequency into the ground at specified locations. The reverberating frequency is recorded via highly sensitive geophones place along the seismic line, and this is interoperated by specialised software to identify the underlying structure of the formation.

Following this, the equipment is demobilised from site, seismic lines rehabilitated and an acquisition report is prepared, followed by interpretation of the data and an interpretation report. Thereafter the data is integrated with the existing aeromagnetic data to provide a clearer picture of the sub-surface geology. The data will then be used to identify the initial areas for the drilling of Core wells and project development and used to assist in the expansion of Gas reserves and Contingent Resources.

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. However, 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 power.

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, and 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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October 09, 2017 02:28 ET (06:28 GMT)