Page 18 - AfrOil Week 42 2021

AfrOil NEWS IN BRIEF AfrOil

UPSTREAM power generation assets at Lesedi with electricity to take advantage of the favourable market
to be sold into the local power grid. conditions.
United Oil & Gas Power Purchase Agreement (PPA) was signed Tlou Energy, October 18 2021
The Company has announced that a 10MW
commences production today between the Company and Botswana COMPANIES
Power Corp. (BPC). Under the terms of the PPA,
at ASX-1X discovery BPC will purchase up to 10MW of power gen-
erated at Tlou’s Lesedi power project. The PPA
AIM-listed United Oil & Gas has provided an is for an initial five-year term with the 10MW Libya’s NOC issues
update on the ASX-1X well in the Abu Sennan project being the first phase of Tlou’s planned statement on kidnapping
licence, onshore Egypt. The Company has a 22% power project expansion.
non-operating interest in the licence, which is Tony Gilby, Tlou’s Managing Director, said: of two employees
operated by Kuwait Energy Egypt. “Signing of the 10-MW PPA is a major step for-
ASX-1X Well: The ASX-1X well is located ward for Tlou and builds on the excellent pro- National Oil Corp. (NOC) confirms the disap-
7 km to the north of the producing Al Jahraa gress made to date. It has taken some time and pearance of two of its employees in mysterious
Field. It safely reached a Total Depth of 4,272 considerable effort to get to this point as all of circumstances yesterday morning, October 17,
metres, several days ahead of schedule and those involved would appreciate. This achieve- 2021 in the capital, Tripoli, immediately after
under-budget. ment puts the Company on a firm path towards their going out.
Preliminary results suggest the well encoun- development of the Lesedi power project and They are Khalid Al-Ati, Chairman of the
tered a combined net pay total of at least 10 considerable growth potential. Management Committee of the Libyan Oil
metres across a number of reservoir intervals, “With strong demand for reliable and cleaner Institute, and Medhat Al-Zayani, an employee
including the primary reservoir targets of the power in the region, this 10-MW project is of Akakus Oil Operations Company.
AR-C. Based on further interpretation of the expected to be the start of much larger develop- Whatever the motives and circumstances of
well data, there was sufficient confidence for the ments by the Company. This is great news for the the disappearance, whether detention, arrest
operator, Kuwait Energy Egypt, to submit notice Tlou, our shareholders and for Botswana. After a or kidnapping, the National Oil Corporation
of a commercial discovery at ASX-1X and an long wait we can now look forward to getting the strongly condemns this act and refuses to harm
application for a 11.92-square km development project up and running.” any of its employees without the permission of
lease to EGPC. Lesedi Power Project: Lesedi is the Com- the Public Prosecution, and demands the imme-
On October 12, 2021, the Minister of Petro- pany’s most advanced project and is located in diate release of Khaled and Medhat immediately.
leum approved the award of this ninth devel- Botswana’s Central District. The project has all The kidnappers will be held responsible for their
opment lease within the Abu Sennan licence. approvals in place to allow development to com- safety and for their safe return to their families.
Production has now commenced from the AR-C mence. The first phase will be a 10-MW power Finally, NOC expresses its deep concern
reservoir with initial gross rates of 870 bpd (191 project with electricity to be sold to Botswana about such actions that would impede the work
bpd net), achieved on a 64/64” choke. This is an Power Corp. Once in full production, 10MW of this vital and sensitive sector and stand in the
exceptionally quick turnaround of just three of generation could provide annual revenue of way of achieving its objectives. NOC also con-
weeks from announcing the initial exploration approximately $10m. firms that it will resort to all legal means and it
well results to securing a development lease and Hydrogen: Tlou’s Hydrogen plans are also is in the process of addressing the Office of the
bringing this new discovery onto production gathering pace. A prototype hydrogen and solid Attorney General in particular.
and generating revenue. carbon production unit is being built in Australia NOC, October 18 2021
Al Jahraa-13 Development Well: The Al by Tlou’s hydrogen partners, Synergen Met Pty
Jahraa-13 development well will target the Ltd, a leading hydrogen developer applying Aminex receives payment
Upper and Lower Bahariya reservoirs in the unique intellectual property in the form of
Al Jahraa Field and follows up on the success plasma technology to convert methane to hydro- of Kiliwani North natural
that was achieved with the Al Jahraa-8st1 well. gen and solid carbon.
The ECDC-6 rig is shortly expected to mobilise Clean Energy Demand: The demand for gas receivables
from its current location in the Eastern Desert, cleaner sources of power is growing in many
with the well-spud expected within the coming jurisdictions and gas prices are rising rap- Aminex has reached an agreement with Tan-
weeks. idly. With Tlou’s established gas reserves and zania Petroleum Development Corp. (TPDC)
United Oil & Gas, October 19 2021 resources, and the ability to develop gas, solar for the payment of outstanding monies owed
and hydrogen projects, Tlou is ideally positioned for past gas sales to TPDC, resulting in a net
cash inflow to the Company of approximately
CBM $1.85mn.
As previously announced, the Company and
Tlou Energy signs PPA with TPDC have been engaged in constructive nego-
tiations over the last few months which have
Botswana Power Corp. resulted in an agreed settlement.
The settlement between the parties involves
Tlou Energy is developing power solutions in the netting off of past gas sales of $6.77mn due
Sub-Saharan Africa through gas-fired power, to the Kiliwani North Joint Venture (KNJV)
solar power and hydrogen projects. The Lesedi against certain amounts owed to TPDC, includ-
Power Project is the Company’s most advanced. ing licence and training fees and TPDC’s profit
Tlou plans to develop gas, solar and hydrogen gas share on the unpaid gas sales.

P18 www. NEWSBASE .com Week 42 20•October•2021