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(Alliance News) - Tlou Energy Ltd said Wednesday its Lesedi 3 production pod, in South Africa, has successfully reached critical desorption pressure.
CDP is the pressure gas begins to come out of coal after a dewatering process.
"Reaching CDP is a positive milestone in the operation and means that as a result of a careful and successful dewatering process to date, gas begins to come out of the coal," the company said.
Tlou said the next stage will see continued water pumping which will lead to the gas pressure "steadily increasing", resulting in flow testing and flaring of the gas.
Lesedi 4, the second pod drilled and completed at the project, continues to be "carefully dewatered", Tlou said.
"Water is continuing to be drawn down in a controlled manner as planned. Further updates on progress at Lesedi 3 and 4 will be provided in due course," the company added.
Managing Director Tony Gilby said: "Since the commencement of production testing, the dewatering process at Lesedi 3 and Lesedi 4 has steadily progressed with CDP recently being reached at Lesedi 3. The primary objective remains to demonstrate a commercial gas flow rate."
Shares in Tlou Energy were up 1.3% Wednesday afternoon at 6.43 pence each.