One step at a time

I realise my posts are too long , so can we shhot down or approve my assessments of the partnership between TLOU and KalaData.

1. For the time being the ppa BETWEEN BPC AND TLOU energy is suspended until TLOU have adequate gas flows for both Kaladata and our first PPA generator as TLOU.


WHY?

Because we have guaranteed Kala first dibs on Flared Gas for their first production.

They have reassured us that the Jan/Feb trial was 100% to their satisfaction - enough to form this partnership!

Depending upon the returns they achieve from the first module they will EITHER open the data centre for initial revenues (which they will share with is 50:50 though 75% of our 50% will be retained and used for interest free loan repayment) OR they will start supplying BPC using their own generators , and they will share the income from BPC with us on the same terms.

How long will that continue? Until the data centre is more profitable than the PPA.
And at that point , TLOU will receive a better return from Kala , and will buy their own generators for the original plan to supple BPC themselves.

Will we have to share our new income with Kala? I think not beyond paying 75% of it to Kala s loan repayments, until theyare paid in full. At that point we;ll be getting 50% of Data Centre profits and 100% of the PPA profits from our supplies.

We need confirmation from the partnership what the terms are - and TGs permanent replacement will want to be party to that agreement unless TG, Ian Campbell and the Pension Fund are all agreed or it goes to a vote from all shareholders.

So the gas content is not an issue during this phase?
Will will need a loan if Kala take the PPA route?
Maybe if we are beefing up gas flows and dewatering #4 and #6 or adding wells.
Which seems to be certain.
Other than that, not until we need to buy and commission our own PPA generators.

To your marks, get set , go.

I have ignored the on-site generator for domestic power - Selemo may supply that already or , hopefully, there is enough gas for a small generator to do it , maybe supplemented by Selemo gas?

Can we start a sensible discussion please?