LONDON (Alliance News) - Tlou Energy Ltd on Thursday said it hopes to shortly start an extended production test at its Lesedi coal-bed methane project in Botswana after submitting its environmental impact statement to authorities.
The environmental impact statement is in the "final stages" of being processed, and if approved would allow the company to push forward in securing a mining licence for the project. The environmental impact statement builds on the scoping study for the project, which was approved back in November.
The Lesedi coal-bed methane project, which aims to produce gas from coal seams, is thought to contain up to 3.3 trillion cubic feet of gas with further prospective resources of 8.6 trillion cubic feet. However, neither of those estimates have been certified.
The Lesedi project contains the Selemo pilot well, which is currently undergoing dewatering operations as gas pressure continues to build. Once all three vertical wells, and their corresponding lateral wells, at the project begin to show peak gas pressures, Tlou will carry out extended production tests.
Tlou said it hopes to begin those tests "in the coming weeks".
Tlou shares were trading up 6.1% to 5.70 pence per share on Thursday morning.
By Joshua Warner; joshuawarner@alliancenews.com; @JoshAlliance
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Tlou Energy (TLOU)