LONDON (Alliance News) - Tlou Energy Ltd on Wednesday said it now holds the first and only certified gas reserves to have ever been declared in Botswana after securing independent reserve certification for its Lesedi coalbed methane gas project.
The certification has been given by SRK Consulting (Australiasia) Pty Ltd, which carried out the assessment of the reserves lying within Lesedi, located in prospecting licence PL002/2004.
"I am absolutely delighted with this news; it is a very significant achievement for Tlou. Initial reserve certification is a major milestone and demonstrates the commerciality of the Lesedi CBM project," said Executive Director Gabaake Gabaake.
"As the first in Botswana to attain independently certified CBM reserves we are in a very strong position to progress the project further for the benefit of our shareholders and to bring a much needed and clean source of power to the people of Botswana," Gabaake added.
The gas reserves that have been certified are only located in the lower Morupule seam. Proven certified gas reserves stand at around 100.0 million cubic feet, proven plus probable reserves stand at 2.7 billion cubic feet and reserves stand at 52.9 billion cubic feet.
The certified contingent gas resources cover all of the coal seams and the analysis has declared there are 1C resources totalling 4.8 billion cubic feet, 2C resources of 236.0 billion cubic feet and 3C resources of 3.24 trillion cubic feet of gas.
"Our plan is to now continue to build reserves and upgrade the category of these reserves as further production data from Lesedi is collected. The initial reserves assessment is based on the production data obtained to date from the three pilot production wells in the Selemo pilot and extrapolating this production data over a potential field development at Selemo to support a 50 megawatt power generation project," said Gabaake.
By Joshua Warner; joshuawarner@alliancenews.com; @JoshAlliance
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Tlou Energy (TLOU)