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(Alliance News) - Tlou Energy Ltd said Monday it is "reassured" by the continued performance of the Lesedi 3 and Lesedi 4 production pods in Botswana, although it recognizes that progress has been slower than anticipated in recent times.
The company said gas continues to flow at the Lesedi coal bed methane project in Botswana, with periodic short term rates significantly higher than those initially announced of approximately 20,000 standard cubic feet per day from Lesedi 3 and Lesedi 4 production pods.
Tlou Energy said the current operational objective of the lateral well dewatering process is to attain sustained gas flow rates at commercial level. The company said it is aiming for a minimum sustained gas flow rate in the region of 80,000 to 100,000 standard cubic feet per day from each production pod.
"As part of the ongoing dewatering process, gas flows are prone to fluctuations which is normal," the company said.
The company said it submitted a proposal to Botswana's Ministry of Mineral Resources Green Technology and Energy Security in 2018 for the development of a CBM gas-to-power plant and was subsequently selected as a preferred bidder for this project and is now awaiting further progress on negotiations with MMGE.
Tlou Energy also said it has as been negotiating project finance, with Botswana Development Corp being the leading candidate to provide the initial capital required to commence power production from the Lesedi CBM project and connect to the grid.
Tlou Energy shares closed down 10% in London at 4.44 pence each on Monday.
By Loreta Juodagalvyte; loretajuodagalvyte@alliancenews.com
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