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ASX ANNOUNCEMENT ASX:TOU TLOU ENERGY LIMITED 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. For personal use only

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Page 1: TLOU ENERGY LIMITED - Home - Australian Securities ... ANNOUNCEMENT ASX:TOU TLOU ENERGY LIMITED 5 Company Information Tlou Energy is an AIM and ASX listed company focused on delivering

ASX ANNOUNCEMENT ASX:TOU

TLOUENERGYLIMITED

 

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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Page 2: TLOU ENERGY LIMITED - Home - Australian Securities ... ANNOUNCEMENT ASX:TOU TLOU ENERGY LIMITED 5 Company Information Tlou Energy is an AIM and ASX listed company focused on delivering

ASX ANNOUNCEMENT ASX:TOU

TLOUENERGYLIMITED

 

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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Page 3: TLOU ENERGY LIMITED - Home - Australian Securities ... ANNOUNCEMENT ASX:TOU TLOU ENERGY LIMITED 5 Company Information Tlou Energy is an AIM and ASX listed company focused on delivering

ASX ANNOUNCEMENT ASX:TOU

TLOUENERGYLIMITED

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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Page 4: TLOU ENERGY LIMITED - Home - Australian Securities ... ANNOUNCEMENT ASX:TOU TLOU ENERGY LIMITED 5 Company Information Tlou Energy is an AIM and ASX listed company focused on delivering

ASX ANNOUNCEMENT ASX:TOU

TLOUENERGYLIMITED

 

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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Page 5: TLOU ENERGY LIMITED - Home - Australian Securities ... ANNOUNCEMENT ASX:TOU TLOU ENERGY LIMITED 5 Company Information Tlou Energy is an AIM and ASX listed company focused on delivering

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

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Main RoadLaydown Yard

Tlou Base Camp

Lesedi Project Permits

Mamba ProjectPermits

Proposed 50MWPower Station Site

PowerMorupule

Station

90MW OrapaPower Station

Selemo Pilot Pod

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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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Proposed Gas Plant

220 kV

132 kV

400 kV

Existing

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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

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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

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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)

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52.9

52.9

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236

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-

-

-

8,596

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Page 6: TLOU ENERGY LIMITED - Home - Australian Securities ... ANNOUNCEMENT ASX:TOU TLOU ENERGY LIMITED 5 Company Information Tlou Energy is an AIM and ASX listed company focused on delivering

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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

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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

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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

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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

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The deepest of the three coal formations. Gross thickness can vary.

Formation Description

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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

100

200

300

400

500

600

00

100

200

300

400

500

600

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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KG

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Tlou Energy Field Camp

0 10 20km

N

A

A’

A

A’

Seismic

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