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(Alliance News) - Tlou Energy Ltd on Monday said the lateral wells of the Lesedi 4 production pod in central Botswana have been successfully drilled.
With drilling of Lesedi 6 production pod being completed, as previously reported, the Botswana and Southern Africa-focused energy company said both Lesedi 4 and Lesedi 6 pods will be flushed to clear the wells.
Tlou Energy said it can then have production equipment installed to commence dewatering ahead of gas production.
Shares in Tlou Energy were up 8.9% to 1.47 pence each in London on Monday morning.
The aim of redrilling the Lesedi 4 wells was to provide straighter lateral sections compared to the original wells, Tlou Energy said, noting the Lesedi 4 pod has flowed gas for "a number of years".
Tlou Energy said these straighter laterals are expected to assist with removing water from the reservoir to more efficiently dewater and flow gas.
Tlou Energy also noted that construction of the transmission lines to connect the Lesedi power project to the existing power grid is progressing, noting overall progress to date of around 90%.
Key items outstanding include a road crossing and further stringing of the line, Tlou Energy said, while transmission line work is on track to be completed later this year and well in advance of planned first power into the grid.
Tlou Energy said work on the substations is also continuing. The substations are required at either end of the transmission line.
The contractors are onsite at Lesedi carrying out initial work including site clearing, Tlou Energy said. It plans to release further updates in "due course".
By Greg Rosenvinge, Alliance News reporter
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