Gee-Ten Ventures Inc.
TSX VENTURE : GTV

Gee-Ten Ventures Inc.

September 04, 2007 15:43 ET

Gee-Ten Ventures Acquires Option to Extract Methane Gas and Generate 50 MW/H of Electricity From Lake Kivu in Rwanda

LAVAL, QUEBEC--(Marketwire - Sept. 4, 2007) - Gee-Ten Ventures Inc. ("Gee-Ten" or the "Company")(TSX VENTURE:GTV) announced today the acquisition of an option to acquire all of the issued and outstanding shares of Lake Kivu Energy (Canada) Inc, a corporation which, through its Rwanda based subsidiary, has entered into a memorandum of understanding (the "MOU") with the Government of the Republic of Rwanda to develop a project of methane gas extraction for electricity production.

Rwanda shares with the Democratic Republic of Congo a major potential source of untapped energy in the form of methane gas, which is dissolved in the deep waters of Lake Kivu (2400 sq km) which straddles the border of Rwanda and DR Congo, in the west of Rwanda. The Lake is unique, in that its deep waters contain an enormous quantity of dissolved methane gas at depths below 250m. The presence of methane in commercial quantities in the waters of the lake has been acknowledged in a number of reports prepared on behalf of the government of Rwanda and international institutions such as the World Bank and the European Union.

Since 1994, Rwanda has developed a stable form of government, in a framework of a presidential republic, whereby the President of Rwanda Paul Kagame, is both head of state and head of government, in a multi-party system. Legislative power is vested in both the government and the two chambers of parliament, the Senate and the Chamber of Deputies led by the Prime Minister, Bernard Makuza, who is appointed by the President. On 5 May 1995, the Transitional National Assembly adopted a new constitution which included elements of the constitution of 18 June 1991 as well as provisions of the 1993 Arusha peace accord and the November 1994 multiparty protocol of understanding. Rwanda is the most densely populated country in Africa with a total population of 9.9 million and a growth rate of 2.7% per annum and has a massive energy shortfall mostly made up by the use of imported oil and the burning of wood.

Twenty five years after the original Lake Kivu gas discovery (in 1937), the first extraction and purification pilot plant was established at Cape Rubona in Gisenyi province in Rwanda in 1963. The Cape Rubona plant, designed and constructed by Union Chimique Belge, (U.C.B.) was intended to operate as an experimental pilot plant with a life expectancy of 10 years. Cape Rubona was located 3 Km from the local Brewery, Bralirwa, which converted one of its boilers to use gas as a combustible to replace the imported fuel oil. This is still operating and consumes and pays for 5,000 cubic meters of purified 80%methane gas per day; the total production of the existing plant. The Rubona plant has now operated on a commercial basis for almost 40 years powering the brewery and provides a valuable resource of operating data for the construction of a commercial power generation operation in the shortest possible timescale.

The last major energy study carried out in 1996, listed Rwanda's national electricity production as 72.2GWh, which covered less than half of the total in country electricity consumption of 154.74GWh; the reminder being imported. This represents approximately 1 % of the total energy consumed in Rwanda, the bulk of which is provided by burning hard woods, or the importation of high cost petroleum products, costing up to 40% of the balance of payments of Rwanda today. The current electricity shortfall for Rwanda is estimated as "in excess of 1,000 Gwh/annum". As a consequence the Government of Rwanda has established UPE GAZ - a State Agency to promote the development of the Gas resource in Lake Kivu (http://www.upegaz.gov.rw/)

Under the current MOU, Kivu Lake Energy Corporation, has the right, subject to the signing of final agreements, to obtain a gas concession for the extraction of methane from Lake Kivu for the production of up to 50 MW of electricity over 25 years. The national utility of Rwanda will commit to purchase all of the production, on a take or pay basis at the plant's gate. The Company will not be responsible for the building or maintenance of the infrastructures which may be necessary for the distribution of the power. Gee Ten is currently assembling an engineering team to review and design the processes for the earliest possible extraction of the gas and generation and sale of electricity and to establish the long term economic viability of the project.

Malcolm Swallow P. Eng, a director of the Company, said: "We are delighted to have obtained the rights to this exciting project with such enormous upside. We believe that Gee Ten could be producing energy from Lake Kivu within two to four years and this will replace much of the energy currently consumed in the Republic of Rwanda and generated from the burning of diesel fuel currently sold at rates in excess of $0,20 per kwh. Being able to exploit the gas contained in the Lake will enable the production of electricity at a lower cost and in a much more environmentally friendly way and the existing data base of information provided by the Rubona plant and the prior studies by the EU and others, further mitigates the risks in this project."

Subject to the approval of the TSX Venture Exchange and of the Gee-Ten shareholders, the option to purchase all the shares of Lake Kivu Energy (Canada) Inc, which owns the underlying MOU with the Rwanda Government through its Rwandan subsidiary Kivu Lake Energy Corporation, can be exercised by Gee-Ten within 30 days of the general annual meeting of its shareholders, which shall be held no later than November 30, 2007. As consideration for the exercise, the Company shall issue an aggregate of 17 million shares of its capital to the vendors, entities controlled by Mr. Michel Delisle and Mr. Sebastien Plouffe. Both Mr. Delisle and Mr. Plouffe are currently dealing at arm's length with the Company. They are however expected to become insiders of the Company if the option is exercised and they will each be entitled to appoint one nominee to the board of directors of the Company for a duration of five years. This option was acquired for an aggregate consideration of $200,000 and no finders fees are payable.

FORWARD-LOOKING STATEMENTS:

Except for statements of historical fact, all statements in this news release, without limitation, regarding new projects, acquisitions, future plans and objectives are forward-looking statements that involve risks and uncertainties. There can be no assurance that such statements will prove to be accurate; actual results and future events could differ materially from those anticipated in such statements.

The technical information concerning the Lake Kivu project have been obtained from sources believed to be reliable but has not been independently verified by the Company

The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this press release.

Contact Information

  • Gee-Ten Ventures Inc.
    Pierre Barnard, secretary
    514-925-6376
    514-925-5076 (FAX)