Oz Tlou Recommences Botswana CBM Wells
Africa-focused but Australia-based Tlou Energy has restarted drilling production wells at its Lesedi coalbed methane (CBM) project in Botswana, it said January 15.
“The company is pleased to announce that following the successful drilling of the vertical wells and the top-hole sections for the new production pods at the Lesedi CBM project, operations have now recommenced to drill the lateral well sections for the first two production pods (Lesedi 3 & 4),” it said.
Following the completion of lateral wells (Lesedi 3A & 3B and Lesedi 4A & 4B), the production pods will be completed using a separate workover rig ahead of installation of surface production facilities including water evaporation ponds. All of the production pods are being drilled in the same area as has been proposed for the initial project development and are aimed at confirming the gas flows in this area as well as ensuring production readiness prior to commencement of development operations, Tlou said. Dewatering and production testing activities will begin immediately following the completion of the production pods and the Company expects to provide regular updates on production testing progress.
A comprehensive tender was recently submitted as a response to a request for proposal (RFP) for supply of CBM gas-to-power to the government of Botswana. Discussions with other potential off-takers as well as development finance providers is in progress and an Environmental Impact Assessment (EIA) for the power generation facility as well as the transmission lines to connect to the electricity grid has also now been submitted, it said.
Tlou is planning an initial 10-MW gas-fired power project, starting with 2 MW that could be expanded as more CBM becomes available. Any power produced will be sold into the power market in Botswana and/or across the Southern African Power Pool (SAPP). It could be sold ‘spot’ or through Power Purchase Agreements (PPA) with one or more customers.
The project would require connection to the local power grid – planned to be made at the town of Serowe, which is located 100 km from the Lesedi CBM project.
It is also bidding to develop an up-to 100-MW CBM-fired power project under a tender organised by Botswana's ministry of mineral resources, green technology and energy security. But two weeks ago the ministry deferred the deadline for bids until October 10, from September 12. Tlou still hopes for a decision on the project in early 2019; it did not request the deferral.
Tlou generated the first power from Botswanan CBM in July 2017; it spent several months last year presenting its case to develop a 100 MW, only for the ministry to cancel the original tender in February 2018 and not issue a new one until July.