CO-OPERATION AGREEMENT EXTENDED

RNS Number : 2386Q

Tlou Energy Ltd

28 November 2016

 

28 November 2016

Tlou Energy Limited

("Tlou" or "the Company")

CO-OPERATION AGREEMENT EXTENDED

Tlou has extended a Co-operation Agreement with General Electric International Inc. ('GE') and IK Holdings Pty Ltd ('IK Holdings') for the delivery of a proposed gas to power solution for Botswana.

The Agreement provides the framework for co-operation between the parties in relation to sharing infrastructure and technical support for the delivery of the 50MW power project; gas supply to the existing 90MW Orapa power station owned by Botswana Power Corporation; and a proposed 300MW gas-fired power project to be developed by IK Holdings and GE.

The agreement was set to expire on 30 November 2016.  This period has now been extended until 28 February 2017.

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For further information regarding this announcement please contact:

Tlou Energy Limited	[phone]
Gabaake Gabaake, Executive Director
Solomon Rowland, Company Secretary
Grant Thornton (Nominated Adviser)	[phone]
Samantha Harrison, Colin Aaronson, Harrison Clarke
Brandon Hill Capital (Financial Adviser and Joint broker)	[phone]
Jonathan Evans, Alex Walker
Optiva Securities Limited (Joint broker)	[phone]
Jeremy King, Christian Dennis
St Brides Partners Limited (Public Relations)	[phone]
Elisabeth Cowell, Lottie Brocklehurst
FlowComms Limited (Investor Relations)	[phone]
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') projects.  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 ('Lesedi'), Tlou Energy provides investors with access to an immediate and longer term opportunity using domestic gas to produce power at lower costs than the current arrangements.

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 pursuit of its goal to become a significant gas to power producer and the Company has the most advanced CBM project in Botswana.  It holds 10 prospecting licences covering an area of ~8,300Km² and the Lesedi project already benefits from significant, independently certified contingent gas resources of ~3.3 trillion cubic feet (TCF) (3C) as well as an initial independent gas reserve certification. 

The first planned gas-to-power solution is expected to be delivered through a scalable project with the Botswana Government.  Following successful implementation of this project the Company plans larger projects to provide further power to Botswana and the southern African region.

 

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