(Alliance News) - Tlou Energy Ltd on Wednesday said the Lasedi 4 production pod in South Africa has achieved critical desorption pressure and testing of Lasedi 3 has produced positive results.
CDP is the pressure at which gas starts to come out of coal following a dewatering process, and Tlou said the gas has begun to come out of the coal at Lasedi 4, building pressure inside the closed casing.
The company also has conducted a short-term gas flow test at Lasedi 3, which reached CDP in June, and Tlou believes the test result is "a positive indication of the pod's potential".
Following the short-term test, dewatering has continued, and the plan is to keep the water level just above the coal, drawing down pressure in the well and letting gas "flow in a controlled manner" so as to achieve long-term gas flow from Lasedi 3.
Tlou Managing Director Tony Gilby said: "We are very pleased to have now reached CDP at both the Lesedi 3 and Lesedi 4 production pods. The short-term gas flow test at Lesedi 3 has also been positive, and with the primary objective of demonstrating a commercial gas flow rate, we look forward to further testing at both Lesedi 3 and 4. Further updates will be provided in due course."
Shares in Tlou were down 2.3% at 6.50 pence on Wednesday morning.
Tlou Energy (TLOU)