Tlou Energy Ltd Tender Technical Stage Decision Approved (6674S)

TIDMTLOU

RNS Number : 6674S

Tlou Energy Ltd

13 March 2019

13 March 2019

Tlou Energy Limited

("Tlou" or "the Company")

Tender Technical Stage Decision Approved

Tlou Energy Limited, the ASX, AIM and BSE listed company focused on delivering power in Botswana and southern Africa through the development of coal bed methane ('CBM') has received confirmation that the technical stage of the Request for Proposal (RFP) for Development of CBM fuelled power plants in Botswana has been passed.

Accordingly, the Botswana Public Procurement and Asset Disposal Board ("PPADB") has approved the request from Ministry of Mineral Resources, Green Technology and Energy Security (MMGE) to open the financial proposal in relation to the Company's gas to power tender.

RFP update

On 10 October 2018 the Company submitted its comprehensive response to the RFP for the Development of a Maximum of 100 MW of Coal Bed Methane Fuelled Power Plants in Botswana.

The 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. If the proposal and the initial project are successful, the Company would look to expand further

Tlou has now received confirmation of the PPADB decision to approve the Ministry's request to open the Financial Proposal in respect of Tlou Energy Limited and Sekaname (Pty) Ltd which both submitted proposals for the 100 MW project and which achieved technical scores of 89.8% and 86.4% respectively in the tender.

The Company looks forward to a positive decision on its Financial Proposal (the final stage of the RFP process) in due course.

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For further information regarding this announcement please contact:

 
 Tlou Energy Limited                        [phone] 
 Tony Gilby, Managing Director 
                                          ---------------------- 
 Solomon Rowland, General Manager 
                                          ---------------------- 
 
 Grant Thornton (Nominated Adviser)         [phone] 
                                          ---------------------- 
 Samantha Harrison, Colin Aaronson, 
  Harrison Clarke, Seamus Fricker 
                                          ---------------------- 
 
 Shore Capital (Broker)                     [phone] 
                                          ---------------------- 
 Jerry Keen, Toby Gibbs, Mark Percy 
                                          ---------------------- 
 
 FlowComms Limited (Investor Relations)     [phone] 
                                          ---------------------- 
 Sasha Sethi 
                                          ---------------------- 
 

Company Information

Tlou Energy is focused on delivering Gas-to-Power solutions in Botswana and southern Africa to alleviate some of the chronic power shortage in the region. Tlou is developing projects using coal bed methane ('CBM') natural gas. Botswana has a significant energy shortage and generally relies on imported power and diesel generation to fulfil its power requirements. As 100% owner of the most advanced gas project in the country, the Lesedi CBM Project, Tlou Energy provides investors with access to a compelling opportunity using domestic gas to produce power and displace expensive diesel and imported power.

The Company is listed on the Australian Securities Exchange, London's AIM market and the Botswana Stock Exchange and is led by an experienced Board, management and advisory team including individuals with successful track records in the CBM industry.

Since establishment, the Company has significantly de-risked the project in consideration of its goal to become a significant gas-to-power producer. The Company flared its first gas in 2014 and has a 100% interest in a Mining Licence and nine Prospecting Licences covering an area of 8,300 Km(2) in total. The Lesedi and Mamba Projects already benefit from significant independently certified 2P gas Reserves of 41 BCF. In addition, 3P gas Reserves of 427 BCF and Contingent Gas Resources of 3,044 BCF provide significant additional potential.

The Company is planning an initial scalable gas-to-power project. Following successful implementation of this first scalable project, the Company looks forward to evaluating longer-term prospects for the delivery of electricity generated from CBM in Botswana to neighbouring countries.

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact [e-mail] or visit www.rns.com.

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March 13, 2019 03:01 ET (07:01 GMT)