Source - RNS
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

Shore Capital (Joint Broker)

+44 (0) 207 408 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 (Public Relations)

+44 (0) 20 7236 1177

Lottie Brocklehurst, Megan Dennison

FlowComms Limited (Investor Relations)

+44 (0) 7891 677 441

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 ~8,300Km2 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
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