29th Jun 2016 07:48
LONDON (Alliance News) - Tlou Energy Ltd on Wednesday said gas flow testing has resumed at its Lesedi coal bed methane project in Botswana, which it said has achieved positive results to date.
The power supplier said gas production at its Selemo 4 well has exceeded its expectations, having demonstrated sustained gas flows, noting that there was also the potential for this site to be its second key gas producing well. Selemo 4 is "still in the well desorption stage", Tlou said, and is expected to continue to produce enhanced gas rates with further dewatering.
Meanwhile at Selemo 1, which is the central and main producing well, the operations team recently conducted a workover to clear coal fines at the intersection of the vertical and lateral wells, which can cause reduced communication between the well pair. Gas production testing from Selemo 1 was temporarily discontinued during this procedure and has now recommenced, Tlou said.
Following the workover, pumping and metering equipment has been installed on the lateral end of the Selemo 1 pilot pod, Tlou added.
The Selemo 2 well, which is the most southerly of the wells, is performing as planned, Tlou said, but although the well has also flown gas, it is not expected to produce rates as significant as the main Selemo 1 well or Selemo 4 well.
"These positive results follow the recent announcement from the Botswanan government that it is proposing the delivery of 100 megawatts of coal bed methane power to be incorporated into its future generation supply plans, which is particularly significant for Tlou as we are developing the most advanced coal bed methane project in Botswana," Acting Managing Director Gabaake Gabaake said.
Shares in Tlou were up 6.8% at 4.27 pence on Wednesday.
By Hannah Boland; [email protected]; @Hannaheboland
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