Page 17 - AfrOil Week 46 2021

AfrOil NEWS IN BRIEF AfrOil

On Block 11B/12B, the Company and its joint lines to connect Lesedi to the existing power grid by certain Directors.
venture partners are contemplating an early pro- is expected to be completed in 2023. Use of Proceeds: The funds will be used to
duction system (EPS) for a phased development The prototype hydrogen production unit is provide general working capital for the Com-
of the Paddavissie Fairway. The joint venture being designed, built and tested in Brisbane prior pany in order to continue its strategy of identi-
is currently performing development studies to transportation to Lesedi in H1-2022, when fying and evaluating high-quality assets in West
and preparing a field development plan and an production trials will commence. The successful Africa at depressed valuations with substantial
environmental application with the intention of production of hydrogen and solid carbon prod- upside for shareholders. The Company is cur-
agreeing gas terms and submitting an applica- ucts could allow the Company to achieve ear- rently assessing several investment opportu-
tion for a Production Right before the Explora- ly-stage revenue ahead of gas-to-power revenue nities, in line with ADM’s growth plans and its
tion Right expires in September 2022. The EPS under the 10-MW PPA. established relationships with project debt and
would provide first gas and condensate pro- Hydrogen Prototype Design: The Compa- off-take lenders, which the board considers may
duction from the Luiperd discovery and would ny’s hydrogen technology partner Synergen have the potential to add significant value to
accelerate the Block 11B/12B development Met (SM), a leading specialist in plasma torch ADM.
timeline by utilising existing nearby infrastruc- and pyrolysis technology, has informed the Aje Field Update: The Company has previ-
ture on the adjacent block in order to supply gas Company that preliminary engineering for ously reported the intentions of the Aje Joint
to existing customers in Mossel Bay. The EPS is their hydrogen-carbon production process has Partners to explore the further development of
expected to significantly decrease the required been completed. The plasma torch will be tested the Aje Field and the production of a field devel-
capital expenditures to reach first production on and configured to optimise hydrogen and solid opment plan (FDP).
Block 11B/12B. carbon production. A consultant engineering The Partners continue to work on a final
The Company expects that a full development company (Kemplant) has been engaged to assist investment decision on a new multi-phase
of the Paddavissie Fairway would follow the EPS with the prototype engineering to allow detailed development plan for the Aje Field which could
as the gas market expands in South Africa. We design and fabrication to commence. Testing significantly increase production levels. The
are encouraged by the ongoing analysis of the of the plasma torch to determine the optimum FDP for the initial phase is primarily focused
seismic data that has identified additional pro- parameters for the production of hydrogen and on the development of two new oil wells and a
spectivity in the Paddavissie Fairway and to the solid carbon is progressing. gas injector well which initial appraisals indicate
east, confirming the large exploration upside Net Zero CO2 emissions potential: Once the could increase gross field production to 9,000
remaining across the block. The development prototype arrives at Lesedi it will utilise Tlou’s barrels per day (bpd) of oil and liquids. These
of Block 11B/12B will have positive implications existing gas flows to produce hydrogen and solid wells are intended to be tied-back to the existing
for the South African economy and will be criti- carbon by-products. Net Zero CO2 emissions Floating Production Storage and Off-loading
cal in facilitating the country’s energy transition potential will be achieved following the planned Vessel (FPSO), via a subsea manifold located at
beyond coal with a domestic natural gas supply. addition of Solar PV energy. the present drill centre.
Africa Energy, November 09 2021 The use of plasma technology for hydrogen As part of the FDP, ADM’s technical team
production will be a first for the sub-Saharan has examined the feasibility of using the existing
region and could have major implications for infrastructure available, where possible, for the
HYDROGEN the production of low emissions, clean energy supply of the two new subsea wells, Aje-6 and
across the region – similarly in the related fields Aje-7. Based on the findings of our review, which
Tlou Energy to produce of waste-to-energy and waste disposal. has been passed to the Partners’ technical com-
Tlou and SM intend to use the hydrogen mittee, the Company’s view is that the existing
green hydrogen at the produced from the prototype to generate elec- subsea hardware infrastructure are able to be
tricity and possibly for transport fuel (initially in used for the new wells, subject to a confirmatory
Lesedi Power Project Tlou’s own vehicles). Solid carbon will be made integrity inspection. In addition, the analysis
available for regional consumers that require the concluded that any potential topside cost and
Tlou Energy is focused on delivering secure, sus- product. World markets for hydrogen and solid control system hardware compatibility issues
tainable, and clean power solutions in Botswana carbon black are predicted to expand considera- would also be reduced if the same type of subsea
and sub-Saharan Africa. At the Lesedi Power bly over the short and medium term. control module as on the existing tree is used for
Project Tlou and hydrogen technology partner SM consider that their process meets the defi- the proposed wells Aje-6 and Aje-7. The ability to
Synergen Met are working on combining large, nition of green hydrogen production via their use the existing infrastructure should de-risk the
established natural gas reserves with abundant plasma torch gas pyrolysis design. expansion plans at Aje and would be expected
solar energy to produce green hydrogen, thus Tlou Energy, November 11 2021 to provide significant cost savings compared to
providing a complementary range of cleaner and installing additional subsea infrastructure.
greener power generation options. Barracuda Field Update: As announced on
Key Points: Green Hydrogen production FINANCE September 30, 2021, ADM’s technical team
planned at Lesedi in 2022, Prototype Engineer- continues to assess the draft of a preliminary
ing proceeding to schedule, Net Zero CO2 emis- ADM Energy raises technical report from the Competent Person for
sions potential and the possibility to generate the Barracuda Field. As reported previously, the
Carbon Credits, Synergen Met IPO planned in GBP475,000 through report is still to be finalised pending further tech-
the coming months. nical appraisal and, therefore, ADM will only be
The Company has secured a 10-MW Power share placement able to finalise the proposed development plans
Purchase Agreement (PPA) with Botswana for Barracuda once it is completed.
Power Corp. (BPC), and power dispatch under ADM Energy has raised a total of GBP475,000 The Company expects to provide a further
this PPA will help displace existing carbon-in- before costs by way of a placing for new ordinary update to the market before year end.
tensive power. The construction of transmission shares in the Company with and a subscription ADM Energy, November 15 2021

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