Gulf Oil and Gas accountACCOUNT

Tlou Energy Provides Funding Update & Ministerial Site Visit

Source: 10/27/2020, Location: Africa

Tlou Energy Limited is an ASX, AIM and BSE listed company focused on delivering power in Botswana and southern Africa through the exploration and development of gas and solar power.

Key Points
- Project Finance negotiations on-going
- Ministerial visit to the Lesedi power project

Project Finance
The Company is currently seeking funding for development of the Lesedi power project. The project is proposed to be developed in two phases.

Phase one involves transmission line construction, transformers, grid connection, electricity generators and potentially the drilling of additional gas wells. The ~100 Km transmission line will run from the Lesedi project to the town of Serowe where it will connect to the existing power grid. Initial generation is proposed to be up to 2MW of electricity. Funding required for phase one is ~USD $10m.

Phase two funding is for the expansion of electricity generation up to 10MW. This will involve drilling additional gas wells and the purchase of additional electricity generators. Funding required for phase two is ~USD $20m.

Upon successful completion of phase one and two, the Company plans to expand the project beyond 10MW. This expansion is expected to be completed using project revenues and debt.

Current funding discussions are mainly related to phase one (USD $10m) and have been progressing well. The Company is in discussion with a number of groups, some more advanced than others. These include institutions with a focus on infrastructure development within Botswana and cleaner energy groups looking to see a move away from traditional coal fired generation.

Discussions with Botswana Development Corporation (BDC) have been ongoing for several months. The Company understands that BDC is seeking internal investment approval and the Company continues to work with BDC to successfully conclude a funding proposal that fits within BDC's investment parameters.

In addition, the Company has recently received an indicative term sheet for transmission line and transformer funding from a new potential financier. The Company will assess this offer alongside other potential financiers to evaluate the best possible option and funding partner going forward.

Ministerial Site Visit
The Company were delighted to welcome Honourable Minister Lefoko Moagi, Minister of Mineral Resources Green Technology and Energy Security (MMGE) and his team to the Lesedi project. Honourable Minister Moagi has been a long-term supporter of Tlou's project and again reiterated his support during his visit.

Tlou Energy Limited would like to sincerely thank Honourable Minister Moagi for taking the time to visit the Company's operations and for the continued support that we receive from the Ministry.

Financials and Investment News in Botswana >>

United Kingdom >>  11/26/2020 - Dogger Bank wind farm owners, Equinor and SSE, have announced financial close on the first two phases of the project, representing in aggregate the la...
Brazil >>  11/25/2020 - Petrobras informs that its Board of Directors approved, in a meeting held today, the Strategic Plan for the five-year period 2021-2025 (SP 2021-25). T...

United Kingdom >>  11/25/2020 - Kistos, the closed-ended investment company which has been established with the objective of creating value for its investors through acquisition and ...
United States >>  11/24/2020 - The U.S. Department of Energy announced $35 million in funding for 11 projects as part of the Advanced Research Projects Agency-Energy’s (ARPA-E) Subm...

Canada >>  11/23/2020 - Suncor, as 58.74% owner of the Syncrude Joint Venture, announced that it, together with the other Syncrude joint venture owners – Imperial Oil Resourc...
Nigeria >>  11/23/2020 - Further to its announcements of 1 September 2020 and 2 November 2020 regarding its proposed investment in Decklar Petroleum Limited ("Decklar") and th...

Botswana Oil & Gas 1 >> 

Oil & Gas Projects in Botswana >>

More News

Related Links

Gulf Oil and Gas
Copyright © 2020 Universal Solutions All rights reserved. - Terms of Service - Privacy Policy.