Tlou Energy Share News (TLOU)

(Sharecast News) - Tlou Energy successfully completed the drilling of the its first development pod at its coal bed methane project in Botswana on Tuesday.The Southern African focused natural gas company said that the pod was completed through the intersection of both the Lesedi 3A and Lesedi 3B lateral wells with the Lesedi 3P vertical well.Following installation of production equipment, dewatering and gas flow testing will commence at Lesedi 3, while the drill rig is being moved to the second planned production pod, Lesedi 4.The wells are being drilled as 'dual lateral pods', comprised of a single vertical production well intersected by two lateral wells, with the lateral wells are being drilled through the gassy coal seam and gas extracted from this coal produced through the vertical production well where it can be gathered and used for power generation."Following this morning's update, we continue to be very satisfied with progress on the ground at Lesedi and eagerly look forward to flow test results in due course. Our fair value estimate stands at approximately 25p/share and, with an active work programme underway and strong progress being made, we continue to see excellent scope for Tlou to become a leading Southern African-focused independent power producer," said a note from analysts at Shore Capital.Tlou Energy's shares were down 0.81% at 6.10p at 1231 GMT.