Tlou Energy Moves Ahead With Botswana CBM Project

Australia's Tlou Energy has provided an update for its horizontal pod production testing program in the Lesedi CBM Project area of Botswana.

The Lesedi CBM project area includes the Selemo Pod (which commenced dewatering on 17 November 2013) and the Lesedi Pod (which commenced dewatering on 5 December 2013).

“The positive production data to date from both pods indicates consistency in water production with low solids content (coal fines). Tlou is encouraged by the quantity of water from each pod. To assist with the dewatering process, the pumps in each pod will be upgraded to accommodate the larger volumes. The water rates are suggestive of both pods being good future gas producers,” the company said in a statement.

In addition to drawing down the pressure via the dewatering process in each Pod, Tlou has begun work on gas marketing agreements with potential off-takers in anticipation of potentially commercial gas flows.

The company plans to drill three core wells will be drilled in the first quarter of this year as part of its 2014 drilling program.

As per the statement key contracts for the provision of drilling, desorption services, laboratory services and wire-line logging have now all been executed.

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