Tlou Announces Operational Report - Quarter Ending 30 September 2021

Source: www.gulfoilandgas.com 10/25/2021, Location: Africa

Tlou Energy Limited is developing power 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 the Company's most advanced project. Tlou plans to develop gas and solar power generation assets at Lesedi with electricity to be sold into the power grid.

Project Areas

The Company has three project areas in Botswana:
- Lesedi Project - Gas & Solar Power, Hydrogen production
- Mamba Project - Exploration & Evaluation
- Boomslang Project - Exploration & Evaluation

Lesedi Project Area, Botswana
Licences: Production Licence 2017/18L, Prospecting Licences 001 & 003/2004 and 35 & 37/2000
Ownership: Tlou Energy Limited 100%

The Lesedi project license covers an area of approximately 3,800 Km2 and consists of four Prospecting Licences (PL) and a Production Licence. The Lesedi Power project is located in the Company's Production Licence area (~800 km2).

The Lesedi project has all approvals in place to allow development to commence. The first phase will be a 10MW power project with electricity to be sold to Botswana Power Corporation. Once in full production, 10MW of generation could provide annual revenue of approximately US$10m.

Key stages of the development are outlined below:
- Construction and installation of an overhead transmission line and substations to connect Lesedi to the electricity grid
- Installation of generation assets
- Commissioning and testing
- Sale of first power

During the quarter, the Company agreed the terms including the interest rate for a facility to fund initial development of the Lesedi project. Legal agreements in relation to this proposal are being prepared. These agreements will need to be finalised and signed before the package becomes binding.

Mamba Project Area, Botswana
Licences: Prospecting Licences 237-241/2014
Ownership: Tlou Energy Limited 100%

The Mamba project consists of five Prospecting Licence s covering an area of approximately 4,500 Km2. The Mamba area is situated adjacent to Lesedi. In the event of a gas field development by Tlou, the Mamba area provides the Company with flexibility and optionality.

The Mamba project is in the exploration and evaluation phase with further operations required on these licences. The next stage of exploration is likely to be core hole drilling. Positive results from operations at Mamba could expand the reserves footprint across Tlou's project areas.

In the event of successful development at Mamba, it is envisioned that this area would be developed as a separate project from Lesedi, again with the potential for gas-fired power, solar power and hydrogen production.

Boomslang Project Area, Botswana
Licence: Prospecting Licence 011/2019
Ownership: Tlou Energy Limited 100%

Prospecting Licence, PL011/2019 designated "Boomslang", is approximately 1,000 Km2 and is situated adjacent to the Company's existing licences.

To date, the Company has not carried out ground operations in the Boomslang area having only received environmental approval to commence exploration activities earlier this year.

Hydrogen
Tlou's Hydrogen plans are also gathering pace. During the quarter Tlou signed a binding Heads of Agreement (HOA) with Synergen Met Pty Ltd, a leading hydrogen developer applying unique intellectual property in the form of plasma technology to convert methane to hydrogen. The HOA involves the construction and commissioning of a hydrogen and solid carbon prototype to be installed at the Lesedi Project.

Design work has commenced on the prototype unit which is proposed to produce hydrogen and solid carbon using Tlou's existing gas flows at Lesedi. The prototype will be constructed and tested in Queensland prior to transportation to Tlou's Lesedi project in 2022.

10MW Power Purchase Agreement
Post quarter end the Company announced that a 10MW Power Purchase Agreement (PPA) was signed between the Company and Botswana Power Corporation (BPC). Under the terms of the PPA, BPC will purchase up to 10MW of power generated at Tlou's Lesedi power project. The PPA is for an initial five-year term with the 10MW project being the first phase of Tlou's planned power project expansion.


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