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LONDON (Alliance News) - Tlou Energy Ltd on Tuesday said it has recommenced pod production drilling at its Lesedi coal bed methane project in Botswana.
The gas-to-power project developer completed its top-hole section drilling in early December and began preparations for drilling of lateral wells for Lesedi 3 and Lesedi 4, which has begun as expected.
Once the lateral well are drilled, the Lesedi 3 and 4 production pods will be completed, followed by the installation of surface production facilities.
After this, dewatering and production testing will begin. "Successfully flowing gas at Lesedi 3 and 4 has the potential to upgrade reserves," Tlou said.
Furthermore, Tlou recently submitted a comprehensive tender. This was responding to a request for proposal for the supply of coal bed methane gas-to-power to the Botswana government.
The firm is also in talks with other potential off-takers while its development finance progresses.
In addition, Tlou has submitted an environmental impact assessment for the power generation facility and the transmission lines to connect it to the electrical grid.
"Thus far, drilling operations at the Lesedi [coal bed methane] project have been progressing according to plan. Following the Christmas break, our field team have re-mobilised and have now recommenced drilling activity to complete the production pods at Lesedi from which we intend to produce gas to potentially supply the initial stages of our proposed [coal bed methane] gas-to-power project," said Tlou Managing Director Tony Gilby.
Shares in Tlou were up 3.8% at 5.81 pence on Tuesday afternoon.
