Tlou Energy Ltd First gas to power generation (5403I)
June 20 2017 - 2:00AM
UK Regulatory
TIDMTLOU
RNS Number : 5403I
Tlou Energy Ltd
20 June 2017
20 June 2017
Tlou Energy Limited
("Tlou" or "the Company")
First Gas-to-Power Generation at Tlou's Lesedi CBM Project
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 it has generated its first power from CBM at its field in
Botswana following the installation of a Gas Generator at the
Selemo project area. The Company has the most advanced CBM project
in Botswana, the Lesedi Project, and already benefits from
significant, independently certified Contingent Gas Resources of
3.2 trillion cubic feet (3C) and independently certified Gas
Reserves. Tlou has been producing gas at Selemo for approximately
12 months.
Ø First power generation from Tlou's CBM gas field & first
power generation from CBM in Botswana
Ø Significant milestone - provides evidence of the ability to
generate power from Tlou's gas
Ø Use of CBM gas will reduce the Company's spend on diesel
Ø CBM gas is cleaner than coal fired power
Tlou's Managing Director Tony Gilby said, "First Gas-to-Power
via CBM in Botswana is an extremely significant milestone for the
Company and in effect a proof of concept of 'first gas
monetisation'. This is the first power generated from CBM in the
country and this achievement reinforces our view that CBM
Gas-to-Power is achievable in Botswana using gas from the Lesedi
Project. CBM gas is a cheaper and cleaner alternative to diesel
generation and is significantly cleaner than coal fired power
generation."
Conversion of field generation from diesel to gas
Power required to run pumps and metering at the Selemo pilot to
date has been supplied solely from diesel generators. The Company's
operations team have now installed a gas generator to replace one
of the diesel generators. Rather than flaring gas produced from the
Selemo pilot wells, it can now be redirected to the gas generator.
Using this indigenous gas provides a saving to the Company due to
the reduced diesel requirement, effectively 'first gas
monetisation'. Tlou plans to replace another diesel generator in
the near term which would provide further savings on diesel
costs.
The Cummins G8.3 generator can supply up to 60 kVA of power and
has been customised to run on a small portion of the gas currently
being produced at the Selemo pilot which would otherwise be flared.
It is expected that the conversion of generation from diesel to gas
will initially reduce the Company's diesel requirement by
approximately 50,000 litres per year. These savings should grow
with time given that a second gas to power generation unit is
planned to be installed.
For further information regarding this announcement please
contact:
Tlou Energy Limited +61 7 3012 9793
------------------------------------ ---------------------
Tony Gilby, Managing Director
------------------------------------ ---------------------
Solomon Rowland, Company Secretary
------------------------------------ ---------------------
Grant Thornton (Nominated
Adviser) +44 (0)20 7383 5100
------------------------------------ ---------------------
Samantha Harrison, Colin Aaronson,
Harrison Clarke
------------------------------------ ---------------------
+44 (0) 207 408
Shore Capital (Joint Broker) 4090
------------------------------------ ---------------------
Jerry Keen, Mark Percy, Toby
Gibbs
------------------------------------ ---------------------
Optiva Securities Limited
(Joint Broker) +44 (0)20 3137 1904
------------------------------------ ---------------------
Jeremy King, Christian Dennis
------------------------------------ ---------------------
St Brides Partners Limited +44 (0) 20 7236
(Public Relations) 1177
------------------------------------ ---------------------
Lottie Brocklehurst, Megan
Dennison
------------------------------------ ---------------------
FlowComms Limited (Investor +44 (0) 7891 677
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 10 Prospecting Licences covering an area of 8,300Km(2) 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
END
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