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ASX ANNOUNCEMENT ASX:TOU
TLOUENERGYLIMITED
2
9 March 2017
Tlou Energy Limited
("Tlou" or "the Company")
Results of SRK Aeromagnetic Data Report
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") from its Lesedi Project is
pleased to announce the results of a report completed by SRK Consulting (Australasia) Pty Ltd (“SRK”)
on existing Aeromagnetic data which has provided critical data for future Reserves assessments and
field development.
Aeromagnetic report received from SRK
Tlou engaged SRK to undertake re‐processing and re‐interpretation of aeromagnetic geophysical data
over the Company’s Lesedi and Mamba Projects in Botswana. This has resulted in a series of new
geophysical images for the projects.
The purpose of this work was to provide an updated geological/structural model of the Tlou Project
areas and support future gas Reserve assessments. This geological work is extremely important as it is
increasing Tlou’s knowledge of the CBM properties of the Lesedi and Mamba project areas and will
provide important inputs to future Reserves assessments and field development.
A structural interpretation has been made and depth to basement mapping undertaken. The key
conclusions are:
The local structure is characterised by the presence of highly magnetic sills and dykes composed
mainly of dolerite.
Although these intrusive bodies have been intersected in many wells, they have minimal
negative impact on gas production or coal continuity;
The observed local structure conforms to the trends in aeromagnetic geophysical images;
Coal continuity and occurrence will be clarified by the acquisition of new 2D seismic data; and
The integration of new 2D seismic data and selected core‐holes with the current reprocessed
aeromagnetic dataset will provide the potential to further clarify structural trends as well as
constrain coal seam continuity and quality variations.
Updated project montages have been included as an appendix to this announcement, and are available
on the Company’s website at http://tlouenergy.com/investor‐centre.
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Further Information on the Lesedi CBM Project
The Lesedi project consists of five CBM prospecting licences in Botswana covering an area of
approximately 3,800km2. Lesedi is the most advanced CBM project in Botswana and has independently‐
certified gas reserves and significant contingent gas resources of ~3.2 trillion cubic feet (3C).
In December 2016 Tlou received a request for proposal from the Botswanan Government to provide up
to 100 MW of CBM power from its Lesedi project. This follows the Government’s announcement in June
2016 that the delivery of 100 MW of CBM power be incorporated into its future generation supply plans.
As announced on 27 February 2017, Tlou signed a Heads of Agreement (“Agreement”) with Independent
Power Corporation PLC (“IPC”) to jointly develop Tlou’s proposed (up to) 100 MW CBM to power project
(“IPP Project”). Tlou has summarised below the key benefits of this Agreement to the Company:
IPC is an experienced power station developer and will internally prepare the detailed feasibility
study (at their cost) to support the RFP tender submission to the Botswana Government for the
initial 10 MW project and larger (up to) 100 MW project;
IPC will fund 50% of external costs required to prepare the feasibility and RFP tender (capped
at US$200,000);
Tlou and IPC will jointly submit the RFP tender as co‐sponsors of the IPP Project (this relationship
is not related to the ultimate IPP Project ownership);
IPC have introduced funding partners who have provided letters of interest for in‐principle
funding support for the downstream infrastructure requirements of the IPP Project;
In effect, IPC and its funding partners plan to facilitate the building and funding of the necessary
power generation and network access assets, enabling Tlou to commercialise its vast gas
resources;
Following execution of all necessary IPP contracts, IPC will project manage the installation of
the downstream components of the project, and may operate these assets for a period of time
prior to handover to the assets owners. IPC will be remunerated for these services under
contract (to be agreed) by the asset owners;
Tlou retains 100% of the Lesedi CBM Project, including current and future gas Reserves;
Tlou plans to fund and develop the gas field once appropriate offtake agreements are in place;
and
Tlou also has retained the right to be a meaningful equity participant (up to 50%) in the power
generation assets.
Tlou believes the agreement with IPC is a major step forward in commercialising its gas resources with
highly experienced power developers, funding groups and equipment suppliers.
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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
Elisabeth Cowell, Lottie Brocklehurst
FlowComms Limited (Investor Relations) +44 (0) 7891 677 441
Sasha Sethi
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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,
Tlou Energy provides investors with access to a compelling immediate and longer term opportunity
using domestic gas to produce power and displace the expensive diesel and import market.
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.
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Approved Environmental Impact Statement for
upstream development
Huge marketopportunity 100% owned
Only GasReserves inBotswana
Government sanctioned 100MW Project +
Request For Proposalreceived
TLOU ENERGYExtracting Clean Gas from Coal Without Fraccing
TLOU ENERGY
www.tlouenergy.comcontact
MONTAGE 1www.tlouenergy.com
33kV123kV220kV330kV400kV
200km
Orapa
GABORONE
Maun
Francistown
Bulawayo
Serule
Dukwi
MowanaNata
Sowa
PalapyeSelebi-PhikweGantsi
Toteng
Gumare
Shakawe
LivingstonKatima
Victoria Hwange
Morupule AMorupule B
Omaere
Tsabong
Matimba P/S
Watershed
JwanengMolepolole
KanyeThamaga
LobatseSpiskop
Proposed Existing
BOTSWANA
Francistown
Letlhakane
MmashoroSeruli
Palapye
Lekala
Serowe
MahalapyeMachaneng
Lephepe
Orapa
DD
(
Selebi-phihwe
p
Main RoadLaydown Yard
Tlou Base Camp
Lesedi Project Permits
Mamba ProjectPermits
Proposed 50MWPower Station Site
PowerMorupule
Station
90MW OrapaPower Station
Selemo Pilot Pod
Maun
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SOUTH
BOTSWANA
LEGEND
Power Plant
Camp & Laydown Yard
Transmission Network
Proposed Gas Pipeline
Pilot Pod
Lesedi Project
Border
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Mamba Project
Proposed Gas Plant
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Existing
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AFRICA
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Tlou PermitsAFRICA
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210 Alice Street, Brisbane QLD 4000, AustraliaTF
+61 (0) 7 3012 9793 +61 (0) 7 3003 0675
Ground Floor, Victoria House, 132 Independence AvenueGaborone, Botswana
+267 316 0857T
BRISBANE (HEAD OFFICE) GABORONE KEY INFORMATION - 31 December 2016
CORPORATE DETAILS
BOTSWANA FACTS
INVESTMENT DRIVERS
ASX Stock CodeShares on IssueCash in Bank
TOU237m$2.4m
Experienced Corporate and Operational team in place
OVERVIEW
$
The most advanced gas company in Botswana
Flowed gas at potentially commercial rates
8,300 km 100% Tlou Energy2
Enhanced gas flow rates
Gas Sales Agreements (GSA’s)
Reserves – currently 239 BCF (2C); 3,295 BCF (3C)
Selemo 1P Dec’14
Date: January 2017
First gas to market
Target 2016
Key Risk
Enhanced gas flow rates
via on-going operations
Country about twice the size of UK & independent since 1966
Approximately 2 million people. English law.
Diamonds main export earner (~US$6 billion/year)
High foreign currency reserves
Lowest corruption index in Africa
Acute electrical energy shortfall
Coal 8-10 USc/kWh; CSTP (solar) 20-25 USc/kWh (BPC)
Diesel and imported power >25 USc/kWh
TLOU CORPORATE
Dual listed ASX/AIM (TOU/TLOU)
AIM liquidity ~1.5m shares/day
~237m shares, ~2m options & ~5m rights
A$2.4m cash (31 December 2016)
No debt
Market Cap ~A$30m / £18m (31 December 2016)
$ INVESTMENT CASE
Typical Tlou surface completion
GE Jenbacher “J Series” Generator
Selemo 1P 2016
Gas Reserves & Resources
Lesedi and
Mamba(all coal seams)
100%
Project TlouInterest
1P(BCF)
2P(BCF)
3P(BCF)
1C(BCF)
2C(BCF)
3C(BCF)
Gas ProspectiveResource (BCF)
0.17 3.9 261.1 4.3 235 3,183 8,596
PRODUCTION
RESERVES
CONTINGENTRESOURCES
UNRECOVERABLE
PROSPECTIVERESOURCES
1C 2C 3C
1P 2P 3PProved Probable Possible
LowEstimate
BestEstimate
HighEstimate
Incr
ea
sin
g C
ha
nce
of
Co
mm
erc
ialit
y
DIS
CO
VE
RE
D
TOTA
L P
ET
RO
LE
UM
INIT
IAL
LY-I
N-P
LA
CE
(P
IP)
UN
DIS
CO
VE
RE
DC
om
mer
cial
Su
b-C
om
mer
cial
610 MW
288 MW
7607 MW
Botswana DemandBotswana Shortfall
Regional Shortfall(excluding Botswana)
Government Selemo site visit - May 2015
UNRECOVERABLE
Transmission Development Plan
Lateral Well
Production WellLateral Well
EvaporationPond
Gas Flare
Gas Water
~750m
Gas
& W
ate
r
Lower Morupule Coal
Kamotaka Coal
(loose sand)Kalahari BedsStromberg
BasaltNtane
SandstoneSerowie &InterbeddedMorupule Formation
Coal & Siltstone
~40m~80m
~450m
~6m thick
Dual Lateral Production Pod
AIM Stock Code TLOU
MARCH 2017
Southern African Power PoolElectricity Shortfall
288 MW
Lesedi (Lower Morupule coal)
(PL002/2004)
Lesedi(all coal seams)
(PL001/2004PL002/2004)
LesediPL003/2004,PL035/2000PL037/2000
100%
100%
100%
Project TlouInterest
1P(BCF)
2P(BCF)
3P(BCF)
1C(BCF)
2C(BCF)
3C(BCF)
Gas ProspectiveResource (BCF)
0.1
0.1
-
2.7
2.7
-
52.9
52.9
-
4.8
4.8
-
68.2
236
-
530
3,243
-
-
-
8,596
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300000 E 350000 E 400000 E 450000 E
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TLOU ENERGYBotswana CBM Project - Technical
www.tlouenergy.comcontact 210 Alice Street, Brisbane QLD 4000, AustraliaTF
+61 (0) 7 3012 9793 +61 (0) 7 3003 0675
Ground Floor, Victoria House, 132 Independence AvenueGaborone, Botswana
+267 316 0857T
BRISBANE (HEAD OFFICE) GABORONE
Date: January 2016
Tota
l Dep
th
Met
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of c
ore
cut
Wire
line
Logg
ing
Str
atig
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ic C
ore
Logg
ing
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l Sea
m te
stin
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Aco
ustic
Bor
ehol
e Im
agin
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Gas
Des
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Gas
Com
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Pro
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Rel
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ensi
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Cal
orifi
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Ads
orpt
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Isot
herm
Mac
eral
Hel
ium
Pyc
nom
etry
San
dsto
ne P
oro
- P
erm
Vitr
ite R
efle
ctan
ce
C1-2X 479.0 52.1
C4-2X 575.3 163.5
D3-3X 577.4 189.3
H3-1X 605.7 309.0
D2-1XR 530.7 200.7
B6-1X 479.8 175.2
C1-2X 575.3 163.5
G5-1X 692.4 234.9
A3-2X 556.3 126.6
A5-1X 265.4 45.8
C4-1XR 592.2 322.5
C4-3XRR 566.5 225.0
F1-1X 613.7 232.4
H3-2X 659.5 383.8
L2 635.0 +18
M1 393.0 +35
Bo
tsw
ana
CB
M P
roje
ct
Well Name
Core-Hole Evaluation
Wellsite Evaluation Specialist Laboratory Analysis
Lower Morupule Seam
Lower Morupule
Depth toTop Coal
CoalThickness
Sub-Surface Control
Loose desert sands
Late Triassic-Early Jurassic. Commonly referred to as ‘Basalt’
Main aquifer in the basin. Cleanest sandstone lies directly underneath the basalt and becomesmore silty at depth.
MosolotsaneFm
NtaneFm
StormbergBasalt
KalahariBeds
ThabaldFm
The uppermost of the coalformations
Se
row
e
The middle of the three coal formations. The thickest and most laterally continuous. The main CBM coal target is at the very base of theMorupule Formattion.M
oru
lpu
leK
am
ota
ka
The deepest of the three coal formations. Gross thickness can vary.
Formation Description
Ecca G
rou
p
Tia
pan
a F
mM
ea F
m
Cross-Section
Selemo 4A
Selemo 1AR
Selemo 2A
Selemo 1B
Selemo 4P
Selemo 1P
Selemo 2P
2015 2020 2025 2030 2035 2040 2045
YEAR
Gas Rate
Water Rate
Plan View of Selemo Wells
KEY INFORMATION - 31 December 2016
ASX Stock CodeShares on IssueCash in Bank
TOU237m$2.4m
AIM Stock Code TLOU
A A’Coal Depth
Coal Thickness
Coal gas contact
Permeability (Selemo)
Gas Composition (Selemo)
average ~450m (~350 - 800m)
~5.5 - 7.2m
~6cc/g (daf)
~5 mD
~85% methane
RG045-3 RG045-2 C4-1XR D3-3X C4-3XRR C1-2XC4-2XSelemo Lesidi
Stratigraphy
Modelled Tlou Gas ProductionProfile Over Time
Aeromagnetic Map
(Long Well Life)
MONTAGE 2www.tlouenergy.com MARCH 2017
SW NE00
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RG045-2 WellKG03
SELEMO
LESEDIC1-2X
SELEMO
D3-3X
RG045-3
RG045-2
RG017
LESEDI
C4-1XR
C4-2X
C1-2X
D3-3X
RG045-3
RG045-2 C4-1XR
C4-2X
RG017
KG
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Tlou Energy Field Camp
0 10 20km
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