Tlou Energy Limited (ASX:TOU) Reports Nearing Completion of Lesedi Substation

Substation Completion Status

Tlou Energy Limited (ASX:TOU) reports that its Lesedi substation is approximately 90% complete, with a 5MVA transformer delivered on 20 November 2024. The transformer is a key component expected to facilitate around 5MW of generation. Final completion of the substation is anticipated before the end of the year.

Gas Production and Challenges

Gas production from the Lesedi 4 and Lesedi 6 gas wells is ongoing, although there are challenges related to coal fines obstructing the downhole pump. Tlou’s operations team is prioritising resolving these issues to enhance gas flow consistency required for power generation.

Gas Reserves Certified

Tlou’s gas reserves have been independently certified by SRK Consulting, indicating 2P Reserves of 40.8 Billion Cubic Feet (BCF), equating to approximately 6.8 million barrels of oil. The Company’s 3P Reserves stand at 426.6 BCF.

Transmission Line Progress

The 66kV transmission line linking Lesedi to the Serowe substation is nearly complete and will support a maximum capacity of 25MW. Minor works remain, including the installation of switchgear prior to energisation.

Future Generation Plans

Discussions are underway with a global power generation supplier to install Cummins gas engines and GE generators at Lesedi. Initial power generation is slated for mid-2025, beginning with 2MW, scaling to 10MW in line with the existing Power Purchase Agreement (PPA) with Botswana Power Corporation. The PPA is initially for five years, with potential extensions for increased capacity.

CEO Comments

Mr Tony Gilby, Managing Director of Tlou Energy, stated, “Reliable energy is in short supply in the region, and Tlou is ideally placed to meet this growing electricity demand as new projects are needed to provide consistent baseload power.”

View Original Accouncement

here

Motley Fool contributor Kiarra Jackson has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

This article was generated using GPT-4o mini, a Large Language Model (LLM), to generate summaries of investing news. While AI is generating the content, we know better than to blindly trust our future robot overlords, and every article is edited and fact-checked by an editor holding the appropriate credentials. The Motley Fool Australia stands behind the work of our editorial team and takes ultimate responsibility for the content of everything published by The Capital Club.