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LONDON (Alliance News) - Africa-focused gas-to-power project firm Tlou Energy Ltd said Monday it had begun drilling at its Lesedi coal bed methane project in Botswana.
The firm spudded its Lesedi 3P well at the site last Tuesday with it being planned to be drilled to a depth of 580 metres. Ultimately, the firm will drill Lesedi as a dual lateral pod with a single vertical production well intersected by two lateral wells.
"This will be followed by production testing with the potential to ultimately convert a significant portion of the currently established gas resources to reserves and to deliver gas to a proposed central processing facility and power station located in close proximity," Tlou explained in a statement.
Production start-up from Lesedi is expected in early 2019.
Alongside the operations program, Tlou will work on the environmental impact assessment for the power station and transmission lines required to connect the Lesedi field to the Botswanan power grid.
The firm is also working with the Botswana Energy Regulation Authority to acquire a power generation license as well as other offtake agreement discussions.
Shares in Tlou were 4.8% lower at 5.52 pence on Monday.