Point 22. In order to give concrete effect to our economic diversification aspirations, Government will prioritise the implementation of Cluster Development across various sectors, particularly the prioritized sectors of diamond beneficiation, tourism, beef, mining and financial services. Government will also expedite the implementation of the Special Economic Zones which will contribute immensely to the socio economic development of this country.
Special Economic Zones (SEZ
The Special Economic Zones (SEZ) policy adopted by the Government of Botswana has been designed to attract world class domestic and foreign investors by offering them developed infrastructure, state of the art technology, beneficial inter-sectoral linkages, improvements in economies of scale, specially trained skilled labour force and targeted economic incentives. Botswanas SEZ policy seeks to:
Coordinate, promote and facilitate SEZ investments
Identify locations for establishing SEZs
sic infrastructure and utilities are in place
National and international programmes promoting SEZs
Licence SEZ investors
At a broader level SEZs are intended to achieve the following:
Diversify the economic and export base of Botswana beyond the diamond mining sector
Provide a hassle free business environment offering investors a competitive edge in world markets
Establish a one stop, full service business environment catering to the needs businesses located within the SEZ
Create business development opportunities for small, medium and micro-enterprise suppliers who meet the logistical and ancillary needs of SEZ enterprises
Develop a portfolio of public sector, private sector, and public-private partnerships (PPPs) with the SEZ as the market indicates
Develop SEZs, which are integrated with domestic, regional and international markets
Categorise and coordinate business development within SEZs to promote inter-sectoral economies of scale
Provide SEZ incentive packages consistent with Botswanas domestic and international trade obligations
Develop SEZ labour laws consistent with the ILO standards
Create employment through the countrywide development of SEZs
Maintaining the momentum
Hot on the heels of an impressive reserves upgrade, Tlou released interim results (for
the six months to December 2017) on 22nd February, reiterating strong progress and
providing some great colour on the forward strategy. Tlou has successfully established
itself as the most advanced gas-to-power developer in Botswana and, with a significant
increase in 2P reserves now in the bag, it appears clear that recent seismic data
acquisition and core-hole drilling activities have been most successful. We see excellent
scope for further reserve upgrades as work continues and, despite the Botswanan
governments planned re-tender to RFP bidders, Tlou has outlined a clear roadmap for
this year, including additional core-hole drilling and seismic data acquisition, the active
pursuit of grid connection options and the targeted commencement of development
drilling in mid-2018. Ahead of news on offtake arrangements and development financing,
we believe it is important to recognise the continued operational momentum at Lesedi
and Mamba, and upgrade our fair value estimate to 30p/share (25p/share previously).
Upgraded reserves comfortably exceed initial commercial threshold: On 20th
February, Tlou released what was, in our opinion, a cracking reserves upgrade, confirming
a 944% increase in 2P reserves to circa 41bcf. We believe that this latest independent
reserves assessment is of particular importance, as it now seems clear that Tlou has
sufficient 2P reserves to underpin first phase commercial development (we had previously
assumed that 20bcf would be required to support an initial 10MW gas-to-power scheme).
Actively pursuing grid connection options: Despite the Botswanan governments
planned re-tender process, Tlou reports that its grid connection plans are well advanced,
with the company evaluating various offtake routes including possible electricity sales into
the SAPP network. We note that Tlou continues to target the commencement of
development drilling later this year so, whilst there will have been some slippage, we see
good scope for first power in early CY2020 (versus our prior expectation of late CY2019).
Fair value estimate upgraded to 30p/share: We continue to believe that a reservesbased
approach is appropriate at this stage and have upgraded our fair value estimate to
30p/share (25p/share previously). Our latest assessment incorporates Tlous substantially
upgraded 2P reserves, partly offset by currency movements and placing-related dilution.
Ahead of the confirmation of offtake and financing arrangements, we believe it is important
to recognise the value of Tlous strategically-important and growing reserves base.
Ø 2P (Proved and Probable) Gas Reserves increased 944% to 40.8 billion cubic feet ('BCF') (previously 3.9 BCF), and;
Ø 3P (Proved, Probable and Possible) Gas Reserves increased by 63% to 426.6 BCF (previously 261.1 BCF).
Tlou Managing Director Tony Gilby said, "This very significant upgrade in gas Reserves reinforces the commerciality of the Lesedi and Mamba Projects. The recent seismic survey and core-hole drilling campaign, along with the Selemo pilot wells producing sustained gas flows for a substantial period of time, confirms that there is huge gas production potential for Tlou's area. Ongoing work to assess this potential continues in tandem with planning for connection to the regional power grid.
Cannot agree with you there soil unless TLOU have operations of some description up and running where ISO9001 and ISO18001 accreditation has already been awarded. If however the Botswana government want separate accreditation for the Botswana operations then THOU should have been aware of this and disputed this before tendering.
I am fairly certain that this fiasco is down to the Bots goverment and they did not do their homework in that main fact that neither of the companies tendering were in production, in fact one is way off production.
I do think this will now expedite the process and in the end will favour Tlou as they are all ready to go. As we all know those of us that invest in Africa, it is never dull?.
Hi all. I wanted to share an email conversation I've had with Colm Cloonan. After listening to the latest vox podcast I really wanted to hear an example of one of the compliance issues that prevented the RFP from continuing, because none were actually given in the interview. So I decided to email Colm directly to ask. I wasn't expecting a reply but to his credit he did respond to me with the following:
"Dear xxxx. Thanks for your continued support. As an example, the tender asked the bidder to provide a Health & Safety Management plan for the project (which was submitted) and proof of Compliance with ISO 18001. However, a certificate confirming proof of compliance is only available once the project is in operation and the H&S Management plan can be assessed as operating at the required standard. Therefore, if this requirement is not removed from the tender document it will not be possible for Tlou to comply with all requirements under the RFP."
I went on to ask if he minded if I shared the above info with this board and he replied with: "Feel free to share this information with others. It is also worth noting that these issues were brought to the attention of the ministry months in advance of our submission so we are surprised that they have ended up as compliance issues. In any case we are very confident of getting one (and probably more than one) off-taker secured via the Government RFP and our other ongoing negotiations."
I personally found the above information about the ISO compliance quite useful. It certainly fits with the idea that the tender document was not suitable given the two parties weren't in operation and that it needed to be amended. I also suppose that if the government had gone ahead and awarded the tender to Tlou for example, then this "compliance" issue could have been used as a possible point of appeal by the other party. So in some respects they probably had to cancel this version of the tender in order to rectify it. Either way I thought it might be useful to others and so figured I would share it.
P.S. before I get accused of some kind of fake news nonsense, check my history and you'll see that I've been holding Tlou since 2016 and am not generally in the business of posting much, either ramp or deramp...but of course, DYOR... Cheers.
Sorry for the off topic but some on here may want to do some research on the above, 4 well drilling campaign starting May/ June, should multibag from current levels, chart is just turning up on the TA once past 9 should see a test of 15p then with more news into the 20p area
Having read the rns's and listened to the CFO, it seems clear that from the outset, the Bots Gov knew that the tender process was unsuitable for both bidders. It is also clear that TLOU knew also, that the process was not fit for purpose, but had no choice but to proceed along regardless.
Both bids were doomed from the start and all the parties knew this from the outset.
So, in my honest and considered opinion, the Bots Gov simply wanted to kick the can down the road for whatever reasons they have with regards to CBM exploitation.
This creates massive uncertainty and the markets don't like uncertainty. Until and unless TG can expedite a change of heart from the Bots authorities, then the sp will simply rise and fall on the whim of negative sentiment.
That means more fall than rise in the coming months, but that is just my opinion and yours is just as valid as mine.
Whilst I don't pretend to understand the details of this situation, and there may well be a perfectly legitimate explanation for what's happened, anyone investing in a company that does most of its trade in Africa is entering a casino - and one where the tables are rigged and the cards are marked.
The whole of sub-Saharan Africa is corrupt - it's just that some countries are worse than others.
It's informative to have a look at the Global Corruption Index - https://www.transparency.org/news/feature/corruption_perceptions_index_2016#table Botswana is actually the best ranked sub-Saharan African country, but it's still only 35 in the rankings, and has a corruption score of 60 (down from 65 in 2012) compared to a score of 90 for top-rated Denmark and New Zealand.
If you look at Zans previous posts you will see he bought at 6p and sold at 8p - after making a large loss on Excite. If not shorting he must be trying to talk down the SP to get back in (still trying to recover the Excite loss). I guess Lewis is shorting?
It always makes me smile when posters come on expecting they can manipulate the SP by posting negative (or positive) "facts". I don't know any investors who would put their wad in to a share on the "advice" from a BB poster. By all means read the story but then DYOR.
zan ,where is your evidence that the product is sub stadard. this is not about the product it is about the project. as i understand it the product is high grade.
also i understand the government is trying to get away from high cost dirty diesel.
visit the TLOU web site and study the project!
If the quality of the resource is of a sub-standard nature then there will be no takers. If the resource itself is not viewed as a priority by the nation's governing bodies, then it will remain unexploited. If there are other more desirable solutions based on political necessity and/or money then, again, it will remain in the ground.
I agree wholeheartedly but these posters do need to be shown up for what they really are on occasions, empty messages with stupid sell rec's do no one any favours and they also mislead other investors and or potential investors.
This stock is still a screaming hold or buy and this weeks shenanigans are a mere blip on what will be a very successful outcome, imho.
Bring on the reserves news and then we will see where we are?
don't take any notice of IT
to get an idea of what a tragic character this is , go over to the TLOU forum on ADVFN where IT posting as Donkey40 and blisters
IT is currently talking to itself
I also note your last sell rec was 13/12/17, sp 12.38p, rising to 17p over the following weeks!!! how did that rec work out? or did you forsee the drop months months ahead? ie bit of a Mystic type?
I also note your not very favourable about this company or it's directors? therefore do yourself a favour and move on, I'm sure this board will not miss the wise words of Zan!!!
"You ask some questions which must be construed obtuse to the subject of the matter at hand whcih is TOILET ENERGY. (like most fools you get personal - and that is a mistake).
Personal and fools, Zan, was it or was it not you who started the personal comments, Colm? what was it, etc etc, I'm sure you can see it for yourself if you re-read your post!!! go on have a look theres a good chap.
Now as for your silly boy comment, "How can the board of TOILET ENERGY stop the share price falling to 3.5P ? hang on why I get by breath back will you.
What an amazing question, how long did it take to devise that little gem?
Answer to your question is of course;
How can the board of Tlou energy, correct name I believe, stop the share price rising to, let's say, 25p???? there go on fill your boots Zan.
Now I don't mind constructive debates, but when poster stick up a sell signal based on absolutely no facts then I challenge. I agree it's been a poor week for Tlou, but my and many other opinions is that this will eventually work to Tlou's benefit and move things along a little quicker.
This for me was in any case a 2/3 hold at an average price of below where we are, patience is required much of the time especially on aim. I'm confident TG and company will get this sorted and back on track sooner than we think and with imminent news on the horizon in respect of the reserves then I see the sp back into the teens very shortly. But as I said I can wait patiently there is no rush at this stage, let the board do what they do best, turn small m/cap companies into larger ones, past performance should give you the hint!!
It is obvious something is off the straight and narrow here. Before tendering TLOU must have known the rules and regulations, the safety and build spec, the location and connection requirements before tendering for the opportunity to produce a gas fired plant for the production of power from the CBM.
TLOU must have been working to some plan agreed between themselves and the Botswanan government.
To put it in context, 10mw of power is only slightly above what the power capacity is required to run a 5th generation offshore drilling rig all be it diesel fired.
Have the owners of existing plants, assuming they are in private hands, become fearful of the competition. Are there certain vested interests here?
Are our competitors in the tender getting in through the back door?
What will TLOU now do with the gas they will produce?
Are there other gas fired plants operating out there that will buy the gas?
Yes we do need a statement and way forward statement from our leader but so far I have found it difficult to speak to anyone about what is going on. I am sure however this is just a temporary set back.
Very informative post thank you. Tell me do you anything about this company and what it is all about? Tell me about the reserves stockpiles they already have with much more to come?
I think you are wrong but as ever we will see.
By the way can you tell me where Lord Lucian and Shergar are please, you apparently know everyone else's exact location!?
Whoever is at fault here - either TLOU for 'misunderstanding ' the brief or the Government Ministry Officials for changing the goal posts- this is an appalling indictment of business relations in Botswana.....,what a mess up. Am sorry for all those private investors who took things on face value and were still holding.
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