18th Mar 2019 13:50
LONDON (Alliance News) - Tlou Energy Ltd on Monday said it has completed two development pods at the Lesedi CBM project in Botswana, which it intends to de-water prior to commencing gas production.
The AIM-listed power company said it has drilled six wells on the Lesedi 3 and Lesedi 4 development pods as part of the recent field drilling programme.
The Lesedi 3 and 4 development pods are located adjacent to the company's proposed central gas gathering and power generation facility.
Tlou said that when the lateral wells intersected the vertical production wells, a significant amount of gas was observed bubbling from the production wells. This occurred on both the Lesedi 3P and 4P intersects but, particularly on Lesedi 4P.
"I am very encouraged by the recently completed drilling program and in particular the strong gas indications observed to date," said Managing Director Tony Gilby.
"Completing the wells in a timely manner and on budget was a great effort by the field staff and they are to be commended for their achievements," added Gilby.
Looking ahead, Tlou said it intends to continue de-watering of the wells in the coming weeks with first indications of controlled gas pressure increasing anticipated in the second quarter of 2019.
Tlou shares were trading 1.8% higher on Monday at 5.60 pence each.
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