18:00 Tue 23 Jan 2018
Tlou Energy Ltd - OPERATIONAL REPORT - QUARTER ENDING 31 DECEMBER
("Tlou" or "the Company")
OPERATIONAL REPORT - QUARTER ENDING
Highlights
· Seismic survey completed across the Lesedi and Mamba project areas with data of excellent quality obtained. Data from survey is being integrated with existing data with a view to expanding the Lesedi and Mamba gas reserves and contingent resources
· Two new core-holes drilled at the
· Operations on a third core-hole at the
· Completed listing upon
· Secured cornerstone
TLOU ENERGY LIMITED PROJECTS
Lesedi CBM Project Area,
The Lesedi project in
The status of the Lesedi area licences is as follows:
Licence |
Expiry |
Status |
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Current |
PL 001/2004 |
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Current |
PL 003/2004 |
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Current |
PL 035/2000 |
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Current |
PL 037/2000 |
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Current |
A seismic survey acquired approximately 250km of data over the Company's Lesedi and Mamba projects including over part of the Mining Licence area. It was conducted by
The Company identified potential gas reservoir compartments outside the currently mapped Gas Reserve areas. These compartments had relatively sparse geological control other than Tlou's existing aeromagnetic data so new seismic data could demonstrate that continuity of gassy coal exists, and this could lead to expanded gas reserves and/or contingent resources.
The seismic lines were inspected and cleared, and equipment and safety checks completed in advance of commencement of the acquisition of the 2D data. The acquisition involved specially designed tractors that are fitted with a vibrating plate which transmits a frequency into the ground at specified locations. The reverberating frequency is recorded via highly sensitive geophones placed along the seismic line and this is interpreted by specialised software to identify the underlying structure.
The new seismic data is of excellent quality and will serve to provide a more accurate picture of the subsurface target coal horizon.
Core-hole operations
The Company planned a core-hole drilling program to follow the seismic survey over the Company's Lesedi and Mamba projects. In consultation with SRK, the Company identified a series of locations using the newly acquired seismic data, for further evaluation by drilling of new core-holes. Two new core-holes were completed in the Lesedi project area during the quarter. This work was completed safely within the terms of the Company's approved Environmental Impact Statement.
Following coring, desorption samples were taken and placed into desorption baths in the field with readings being taken and sent to Weatherford laboratories in
Once this analysis is complete, the physical samples will be sent to Weatherford for further analysis. Results of the desorption testing are expected in Q1 2018 and will be taken into account by SRK for expansion of the Company's gas reserves and contingent resources. The Company has begun work upon a further core-hole in the Mamba project area and an initial dual lateral development pod is planned in 2018 with the location to be determined following consultation with SRK.
Key benefits of the core-hole drilling program include:
1. Confirming coal quality, thickness, and gas content in a previously un-drilled area of the Lesedi project;
2. Providing new information to potentially expand the Company's gas reserves and contingent resources. An increase in the gas reserves and contingent resources could significantly increase the Company's valuation;
3. The additional data will be used to determine the optimum location for initial project development as well as high-grading additional areas for further development both within the Lesedi and Mamba project areas. This provides the Company with additional future optionality.
Initial project development is planned to commence in 2018, subject to the results of the Company's application to the Government of
Mamba Project Area,
Prospecting Licences 237-241/2014
The Mamba project consists of five Coal and CBM prospecting licences in
The status of the Mamba Area Prospecting Licences is as follows:
Licence |
Expiry |
Status |
PL 237/2014 |
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Current |
PL 238/2014 |
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Current |
PL 239/2014 |
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Current |
PL 240/2014 |
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Current |
PL 241/2014 |
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Current |
Core-hole operations
At the end of the quarter, field preparation work, including site clearing and safety checks were conducted at the planned location of a core-hole to be drilled in the Mamba project area.
This is the first core-hole drilled by the Company in the Mamba area. Like the core-holes in the Lesedi area, the data obtained will be used by SRK to potentially expand the Company's gas reserves and contingent resources into the Mamba project. This could allow the Company the option to proceed with development projects in both the Mamba and Lesedi areas.
Corporate
The Company listed on the main board of the
Listing on the BSE has a number of advantages for the Company. One of the key advantages is that, as a BSE listed entity, the Company has access to the significant investment funds which are available for development of
The subscription was managed by
Other
Two million shares were issued during the quarter following the exercise of share options, with gross proceeds of approximately
The Managing Director
****
Managing Director
Website: www.tlouenergy.com
For further information regarding this announcement please contact:
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+61 7 3012 9793 |
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+44 (0)20 7383 5100 |
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Shore Capital (Joint Broker) |
+44 (0) 207 408 4090 |
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+44 (0) 7891 677 441 |
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Company Information
The Company is listed on the
Since establishment, the Company has significantly de-risked the project in consideration of its goal to become a significant gas-to-power producer. The Company flared its first gas in 2014, holds a
The Company is planning an initial scalable gas-to-power project in
+Rule 5.5
Appendix 5B
Mining exploration entity and oil and gas exploration entity quarterly report
Introduced 01/07/96 Origin Appendix 8 Amended 01/07/97, 01/07/98, 30/09/01, 01/06/10, 17/12/10, 01/05/13,
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ABN |
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Quarter ended ("current quarter") |
79 136 739 967 |
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Consolidated statement of cash flows |
Current quarter $A'000 |
Year to date (6 months) |
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1. |
Cash flows from operating activities |
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1.1 |
Receipts from customers |
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1.2 |
Payments for |
(1,497) |
(1,964) |
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(a) exploration & evaluation |
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(b) development |
(19) |
(219) |
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(c) production |
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(d) staff costs |
(352) |
(633) |
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(e) administration and corporate costs |
(648) |
(1,088) |
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1.3 |
Dividends received (see note 3) |
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1.4 |
Interest received |
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1 |
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1.5 |
Interest and other costs of finance paid |
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1.6 |
Income taxes paid |
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1.7 |
Research and development refunds |
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1.8 |
Other (GST refunds) |
94 |
118 |
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1.9 |
Net cash from / (used in) operating activities |
(2,422) |
(3,785) |
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2. |
Cash flows from investing activities |
(21) |
(21) |
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2.1 |
Payments to acquire: |
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(a) property, plant and equipment |
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(b) tenements (see item 10) |
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(c) investments |
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(d) other non-current assets |
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2.2 |
Proceeds from the disposal of: |
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(a) property, plant and equipment |
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(b) tenements (see item 10) |
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(c) investments |
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(d) other non-current assets |
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2.3 |
Cash flows from loans to other entities |
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2.4 |
Dividends received (see note 3) |
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2.5 |
Other (provide details if material) |
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2.6 |
Net cash from / (used in) investing activities |
(21) |
(21) |
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3. |
Cash flows from financing activities |
4,182 |
4,182 |
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3.1 |
Proceeds from issues of shares |
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3.2 |
Proceeds from issue of convertible notes |
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3.3 |
Proceeds from exercise of share options |
237 |
237 |
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3.4 |
Transaction costs related to issues of shares, convertible notes or options |
(28) |
(28) |
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3.5 |
Proceeds from borrowings |
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3.6 |
Repayment of borrowings |
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3.7 |
Transaction costs related to loans and borrowings |
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3.8 |
Dividends paid |
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3.9 |
Other (provide details if material) |
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3.10 |
Net cash from / (used in) financing activities |
4,391 |
4,391 |
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4. |
Net increase / (decrease) in cash and cash equivalents for the period |
5,288 |
6,727 |
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4.1 |
Cash and cash equivalents at beginning of period |
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4.2 |
Net cash from / (used in) operating activities (item 1.9 above) |
(2,422) |
(3,785) |
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4.3 |
Net cash from / (used in) investing activities (item 2.6 above) |
(21) |
(21) |
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4.4 |
Net cash from / (used in) financing activities (item 3.10 above) |
4,391 |
4,391 |
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4.5 |
Effect of movement in exchange rates on cash held |
227 |
151 |
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4.6 |
Cash and cash equivalents at end of period |
7,463 |
7,463 |
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5. |
Reconciliation of cash and cash equivalents |
Current quarter |
Previous quarter |
5.1 |
Bank balances |
7,463 |
5,288 |
5.2 |
Call deposits |
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5.3 |
Bank overdrafts |
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5.4 |
Other (provide details) |
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5.5 |
Cash and cash equivalents at end of quarter (should equal item 4.6 above) |
7,463 |
5,288 |
6. |
Payments to directors of the entity and their associates |
Current quarter |
6.1 |
Aggregate amount of payments to these parties included in item 1.2 |
190 |
6.2 |
Aggregate amount of cash flow from loans to these parties included in item 2.3 |
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6.3 |
Include below any explanation necessary to understand the transactions included in items 6.1 and 6.2 |
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Office rent, Directors fees and salaries
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7. |
Payments to related entities of the entity and their associates |
Current quarter |
7.1 |
Aggregate amount of payments to these parties included in item 1.2 |
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7.2 |
Aggregate amount of cash flow from loans to these parties included in item 2.3 |
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7.3 |
Include below any explanation necessary to understand the transactions included in items 7.1 and 7.2 |
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8. |
Financing facilities available |
Total facility amount at quarter end |
Amount drawn at quarter end |
8.1 |
Loan facilities |
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8.2 |
Credit standby arrangements |
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8.3 |
Other (please specify) |
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8.4 |
Include below a description of each facility above, including the lender, interest rate and whether it is secured or unsecured. If any additional facilities have been entered into or are proposed to be entered into after quarter end, include details of those facilities as well. |
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9. |
Estimated cash outflows for next quarter |
$A'000 |
9.1 |
Exploration and evaluation |
1,077 |
9.2 |
Development |
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9.3 |
Production |
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9.4 |
Staff costs |
336 |
9.5 |
Administration and corporate costs |
371 |
9.6 |
Other (Equipment) |
101 |
9.7 |
Total estimated cash outflows |
1,885 |
10. |
Changes in tenements |
Tenement reference and location |
Nature of interest |
Interest at beginning of quarter |
Interest at end of quarter |
10.1 |
Interests in mining tenements and petroleum tenements lapsed, relinquished or reduced |
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10.2 |
Interests in mining tenements and petroleum tenements acquired or increased |
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Compliance statement
1 This statement has been prepared in accordance with accounting standards and policies which comply with Listing Rule 19.11A.
2 This statement gives a true and fair view of the matters disclosed.
Sign here: ........
(Director/Company secretary)
Notes
1. The quarterly report provides a basis for informing the market how the entity's activities have been financed for the past quarter and the effect on its cash position. An entity that wishes to disclose additional information is encouraged to do so, in a note or notes included in or attached to this report.
2. If this quarterly report has been prepared in accordance with Australian Accounting Standards, the definitions in, and provisions of, AASB 6: Exploration for and Evaluation of Mineral Resources and AASB 107: Statement of Cash Flows apply to this report. If this quarterly report has been prepared in accordance with other accounting standards agreed by ASX pursuant to Listing Rule 19.11A, the corresponding equivalent standards apply to this report.
3. Dividends received may be classified either as cash flows from operating activities or cash flows from investing activities, depending on the accounting policy of the entity.
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