Last checked at 15 Mar 2022 07:00
15 March 2022
Tlou Energy Limited
("Tlou" or "the Company")
Transmission Line Contract Signed
The Company is pleased to confirm that the contract for the construction of the transmission line to connect the Lesedi Power Project to the Botswana's electricity grid has been signed.
Transmission Line Construction
The Lesedi Power Project ("Lesedi") is located approximately 100 Km from the existing electricity grid in Botswana. The first stage of development will be the erection of wooden poles fitted with an overhead 66kV transmission line, capable of supplying up to 25MW of power into the grid.
The line will commence at Lesedi and run across predominantly flat, arid terrain. The final ~5 Km traverse the outskirts of the Serowe township, where the line will join the existing grid.
Zismo Engineering Pty Ltd ("Zismo") has been engaged to construct the transmission line. Based in Botswana, Zismo is an experienced, electrical engineering, contracting, automation and refurbishment company.
Zismo expect to mobilise plant and equipment onsite in the coming weeks. The project is expected to take approximately 15 months to complete. The Company will provide further updates as the line progresses.
Tlou's Managing Director, Mr Tony Gilby commented, "Commencement of transmission line construction represents a new and exciting phase for the Company aimed at delivering on our huge gas-to-power potential and starting the monetisation process for our considerable gas reserves.
We very much look forward to working with Zismo on transmission line construction and achieving first revenue.
It has taken a long time but what has been achieved to this point is outstanding. We are extremely grateful to our stakeholders and investors for staying the course.
Having secured the first tranche of BPOPF funds allowing us to get Zismo started on the transmission line we are now progressing additional power off-takers as well as exploring further ways of monetising our enormous gas reserves.
The existing two production pods continue to flow gas and perform in line with expectations given these are only two pods in a very large basin. Additional wells should assist the dewatering process and result in higher gas flow rates.
Tlou has 100% ownership of a very large quantity of gas which will become increasingly valuable with time as a cleaner and reliable energy source in this part of Africa.
Step by step, we are making solid progress towards becoming a leading clean energy supplier in the region."
Substation Construction
In addition to the overhead lines, substations will be installed at Lesedi and Serowe. The Lesedi substation will integrate the generation assets with the transmission line and the Serowe substation will tie in with Botswana Power Corporation's existing infrastructure. This work will be completed by OptiPower, a division of Murray & Roberts Ltd.
The substation contract is due to be signed later, with completion scheduled to tie in with completion of the overhead lines.
By Authority of the Board of Directors
Mr. Anthony Gilby
Managing Director
The information contained within this announcement is deemed to constitute inside information as stipulated under the retained EU law version of the Market Abuse Regulation (EU) No. 596/2014 (the "UK MAR") which is part of UK law by virtue of the European Union (withdrawal) Act 2018. The information is disclosed in accordance with the Company's obligations under Article 17 of the UK MAR. Upon the publication of this announcement, this inside information is now considered to be in the public domain.
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For further information regarding this announcement please contact:
Tlou Energy Limited | +61 7 3040 9084 |
Tony Gilby, Managing Director | |
Solomon Rowland, General Manager | |
Grant Thornton (Nominated Adviser) | +44 (0)20 7383 5100 |
Harrison Clarke, Colin Aaronson, Ciara Donnelly | |
Arden Partners (Broker) | +44 (0) 20 7614 5900 |
Antonio Bossi | |
Public Relations | |
Ashley Seller | +61 418 556 875 |
About Tlou
Tlou is developing energy solutions in Sub-Saharan Africa through gas-fired power, solar power and hydrogen projects. The company is listed on the ASX (Australia), AIM (UK) and the BSE (Botswana). The Lesedi Power Project ("Lesedi") is 100% owned and is the Company's most advanced. Tlou's competitive advantages include our ability to drill cost effectively for gas, our operational experience and Lesedi's strategic location in relation to energy customers. All major government approvals have been achieved.
Forward-Looking Statements
This announcement may contain certain forward-looking statements. Actual results may differ materially from those projected or implied in any forward-looking statements. Such forward-looking information involves risks and uncertainties that could significantly affect expected results. No representation is made that any of those statements or forecasts will come to pass or that any forecast results will be achieved. You are cautioned not to place any reliance on such statements or forecasts. Those forward-looking and other statements speak only as at the date of this announcement. Save as required by any applicable law or regulation, Tlou Energy Limited undertakes no obligation to update any forward-looking statements.