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LONDON (Alliance News) - Africa-focused power developer Tlou Energy Ltd said on Monday it is ready to start drilling production wells at its gas field in Botswana, which is expected to form part of its initial gas-to-power project.
Preparation has begun with pre-mobilisation activities to allow for site clearing and construction of well-site facilities, as well as making sure a nearby core-hole that has been drilled is plugged and abandoned before the first well is spudded.
The vertical production wells and top-hole sections of the lateral wells are expected to be drilling in early October, when the long lead items are onsite. Up to three production pods, comprising three wells per pod, are planned.
Concerning the gas-to-power project, initial development of up to 10 megawatts is planned, starting with the first two megawatts of power that can be expanded as further drilling is conducted and more gas becomes available.
Tlou will look to connect the Lesedi coal bed methane project to the local power grid, and intends to make the connection at the town of Serowe, 100 kilometres away from Lesedi. A draft transmission line has been determined, and negotiation are currently in progress.
Shares in Tlou Energy were down 2.4% at 5.76 pence on Monday.