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.
Very positive interview today, looks like we will hear something late tomorrow or Thursday am.
Also awaiting upgrade of reserves which is equally as important to the company and sp.
Exciting times here despite the drop this week, still have every confidence here and ignore the price movements for now, long term this should do very well.
Changing the scope??.......Something amiss with the financials??
Only wished I'd noticed the RNS earlier, so I could have sold and come back in at a cheaper price. Sounds very strange, but at least we have a strong BoD who hopefully have the capabilities to overcome any obstacles.
Just such a shame, as it's now going to be additional months waiting and we've now lost the momentum we were building up.
Tlou Energy Limited, the company focused on developing Gas-to-Power projects in Botswana and southern Africa through the development of coal bed methane ("CBM") natural gas, has received confirmation that the Ministry of Mineral Resources Green Technology and Energy Security has requested that the Request for Proposal (RFP) for Development of up to 100MW of CBM fuelled power plants in Botswana be re-tendered, with the two bidding companies, including Tlou, invited to submit bids under a new re-tender process.
The decision to cancel the original RFP and re-tender has been approved by the Public Procurement & Assets Disposal Board (PPADB) in Botswana as set out below:
'Ministry of Mineral Resources Green Technology and Energy Security (MMGE) request for cancellation of the tender for Development of a maximum of 100MW Coal Bed Methane Fuelled Power Plants in Botswana and re-tender by shortlisting the same two bidders who had bid for the tender being Tlou Energy Limited and Sekaname (Pty) Ltd.'
The Ministry of Mineral Resources Green Technology and Energy Security will debrief the two bidding companies on Wednesday 14 February 2018 in relation to the original submission and the planned re-tender process. Thereafter further information will be available, and the Company will convey this information to the market as soon possible. Should an RFP re-tender be announced as referred to in the PPADB statement, the Company will assess this in detail before making any further decision to participate in the re-tender process or not.
Whilst the Company has been awaiting a response from the RFP process, in line with its stated aim of becoming a regional power producer, it has continued to pursue other potential options for the sale of Tlou's gas or power in the southern African region.
These other opportunities will continue to be developed as a priority. Developing the project, securing offtake agreements with third parties, connecting to the grid and selling or wheeling power regionally is potentially a simpler option which can be better controlled by the Company. As Botswana is part of the Southern African Power Pool (SAPP), Tlou is not restricted from connecting to the grid in Botswana and supplying power via wheeling arrangements to other SAPP member states.
The Company has already commenced a market study to provide information on the power sectors in Botswana and surrounding countries including South Africa, Namibia, Zimbabwe, and Zambia.
The study will provide an outlook on the potential developments in the power sectors in these countries from a supply/demand point of view, target areas with potential power purchasers, estimated tariff levels, analysis of the political, legal and regulatory frameworks for the power sectors in the surrounding SAPP countries and procedures for wheeling power.
Seismic and core-hole data
Results from the recent seismic survey and core-hole drilling are being assessed by SRK Consulting (Australasia) Pty Ltd, Tlou's geological consultants and independent reserve certifiers with the Company expecting to receive an update on this in the near term.
Earlier today was going to top up with sxx, but unusually couldn't get a quote to purchase, which I found unusual. After several attempts to purchase, decided to top up with a bit of tlou instead. Absolutely no regrets, good decision. Big news likely here soon...upgrade plus government go ahead could mean great Spring for holders here.
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