Tlou Energy Ltd · ASX:TOU
Tlou Energy — Investor Presentation (March 2021)
30 slides from Tlou Energy's investor presentation, Mar 17, 2021
Slide 1: Presentation March 2021
Tlou Energy Limited Presentation March 2021 Cleaner energy vision for Botswana and beyond
Slide 2: Disclaimer
Disclaimer The information memorandum and presentation materials (the “Presentation Materials”) are confidential and being supplied to you solely for your own information and may not be reproduced, further distributed, or the contents otherwise divulged, directly or indirectly, to any other person o
Slide 3: Disclaimer continued
Disclaimer continued No recipient of these Presentation Materials should deal in or attempt to deal in or otherwise engage in any behaviour in relation to financial instruments (as defined in the Market Abuse Regulation (596/2014) as brought into UK law through the European Union (Withdrawal) Act 20
Slide 4: Introduction: Lesedi Power Project
Introduction Lesedi Power Project Tlou Energy Limited 4
Slide 5: Introduction
Introduction ➢ Tlou Energy Limited is focused on generating cleaner power in Botswana for supply into the local and regional power markets. ➢ Power is proposed to be generated from both Solar and Gas. ➢ The Company’s most advanced project is the Lesedi Power Project in southeast Botswana. ➢ Tlou is
Slide 6: Corporate Information
Corporate Information ➢ The Company is listed on three markets o Botswana Stock Exchange – BSE Shareholding o Australian Securities Exchange – ASX o London Stock Exchange – AIM 41% 40% ➢ Issued share capital: 525,199,039 ➢ Top 20 holders: ~54% ➢ Office Location o 132 Independence Avenue, Gaborone ➢
Slide 7: Board
Board Martin Gabaake G. Colm McIver Gabaake Cloonan Non-Executive Chair Executive Director Finance Director & CFO 20 years experience in finance Geologist, former Botswana Finance professional; and mining services Permanent Secretary at 20 years experience including Ministry of Minerals Energy & pow
Slide 8: Key Management
Key Management Solomon Danny Remigiyo Rowland Horne Mavata General Manager Chief Operations Officer Chief Geologist Lawyer, Co. Secretary, over 18 30 years in the drilling industry Geologist, 20+ years African years experience including 18 years in the Oil & experience in multidisciplinary Gas Secto
Slide 9: Market Opportunity
Market Opportunity Botswana’s reliance on imported power comes with an enormous cost. Without sufficient internally produced power, neighbouring countries control Botswana’s energy security • Botswana is currently not able to meet demand The considerable cost of imported power • Operating Capacity 4
Slide 10: Funding Requirement
Funding Requirement ➢ The Lesedi power project is proposed to be developed in two phases. ➢ The Company are currently seeking funding as part of Phase 1. Phase 1 Phase 2 Transmission line and Expansion initial generation assets • Drilling of additional gas wells • Construction of a 66kV overhead • P
Slide 11: Value Creation / News Flow
Value Creation / News Flow ➢ The Company has a number of key items that it aims to complete as soon as possible. Finalise Phase 1 funding Agree 10MW PPA Transmission line tender award Key Commencement of construction Targets: Installation of generation assets Commissioning and testing of generation
Slide 12: Lesedi Gas-to-Power Project
Lesedi Gas-to-Power Project Electricity generation from Tlou’s Lesedi CBM gas Tlou Energy Limited 12
Slide 13: Project Location - Botswana
Project Location - Botswana The existing electricity grid provides access to Botswana’s local power market and also to a wider market via the Southern African Power Pool (SAPP). Tlou Energy Limited 13
Slide 14: Lesedi Power Project – Tlou’s most advanced project
Lesedi Power Project – Tlou’s most advanced project The Lesedi Gas-to-Power project is proposed to generate electricity from gas for sale into the local electricity grid. The initial phase of development is planned to produce up to 10MW with further expansion thereafter. Completed Gas Produced from
Slide 15: Gas Production and Generation
Gas Production and Generation Tlou’s gas wells, referred to as ‘Dual lateral Pods’ consist of two lateral Gas produced from Tlou’s Dual Lateral Pods are planned to feed into wells that intersect with a vertical well to produce gas. a Central Processing Facility to be converted into electricity and s
Slide 16: Substation and Production well
Substation and Production well Serowe Substation – where Tlou plans to connect its transmission line to the regional electricity grid Gas Production well in the Lesedi project area Tlou Energy Limited 16
Slide 17: Independent Gas Reserves Certification
Independent Gas Reserves Certification(1) 0.35 BCF (1P) 40.8 BCF (2P) 426.6 BCF (3P) (1) (2) Gas Reserves Gas Contingent Resources 1P 2P 3P 1C 2C 3C Gas Prospective Location Project Tlou Interest (BCF) (BCF) (BCF) (BCF) (BCF) (BCF) Resource (BCF)3 Lesedi CBM Karoo Basin (Lower Morupule coal) 100% 0.
Slide 18: Hybrid Gas & Solar Power
Hybrid Gas & Solar Power Baseload power using Solar combined with gas- fired generation. Tlou Energy Limited 18
Slide 19: Tlou’s proposed Hybrid Gas and Solar Power Solution
Tlou’s proposed Hybrid Gas and Solar Power Solution Tlou Energy Limited 19
Slide 20: Gas and Solar - Advantages
Gas and Solar - Advantages A number of advantages are associated with Tlou’s gas and solar hybrid solution Offers potential 24-hour baseload and peaking power Combining gas and solar could create a significant expansion opportunity Solar can compliment gas generation as the project grows One of Tlou
Slide 21: Environmental, Social and Governance
Environmental, Social and Governance Tlou Energy supports various groups to enhance the lives of the local population and regional communities Tlou Energy Limited 21
Slide 22: Environmental, Social and Governance
Environmental, Social and Governance Powering Botswana’s communities Potential benefits of Tlou’s project include: • Allowing farms and communities to become more productive using reliable and cleaner power. • Facilitating clean cooking by reducing the need to burn wood as the affordable electricity
Slide 23: Environmental, Social and Governance
Environmental, Social and Governance Projects supported by Tlou Energy include: Moralane Y-Care Broadcasters Organisation ❖ Village Community Development ❖ Charitable Trust ❖ Youth organisation, to promote academic Initiative excellence in primary schools • Non-profit organization raising funds for
Slide 24: Environmental, Social and Governance
Environmental, Social and Governance Western Sandveldt Farmers Association The Company has been in consultation with the Western Sandveldt Farmers Association to progress ideas to develop the Lesedi project area and provide significant benefit of the community. Farming • Access to power has the pote
Slide 25: Water Production
Water Production In addition to power production, Water produced during operations can provide many benefits Water Water is produced as part of Tlou’s gas production process • This water has the potential to be used for local agriculture which could increase production from farms • Reverse osmosis (
Slide 26: Environmental Impact Statement (EIS)
• As part of the EIS process, extensive engagement with stakeholders was undertaken including: • Local population • Key Government Departments • Land Boards • Farmers • All stakeholders are consulted so concerns are addressed and ideally that they can all benefit from Tlou’s project • The project wi
Slide 27: Environmental Impact Statement (EIS) continued
Environmental Impact Statement (EIS) continued ➢ Upstream EIS ➢ Downstream EIS ➢ Carbon Neutral • Upstream operations involves the • Downstream operations include • Tlou’s aims to reduce the impact exploration and development of power generation assets, solar the project has on the environment Tlou’
Slide 28: Exploration Projects
Exploration Projects Along with part of the Lesedi area, Tlou has two other project areas in the exploration and evaluation phase Tlou Energy Limited 28
Slide 29: Exploration Project Areas
Exploration Project Areas ➢ Lesedi Project ➢ Mamba Project ➢ Boomslang Project • The Lesedi Project consists of four • The Mamba Project consists of five • The Boomslang Project area Prospecting Licences (or PL’s) plus a PL’s covering an area of consists of one PL with an area of Mining Licence with
Slide 30: Cleaner Energy
Tlou’s cleaner energy solution ✓ Tlou Energy is planning energy solutions for Botswana and southern Africa including: ➢ Gas fired power ➢ Solar generation ➢ Hybrid gas and solar power ✓ Development planned to expand beyond the initial 10MW proposal ✓ Access to land for further expansion Cleaner Ener