Drilling recommence at Lesedi CBM

Tlou Energy has recommenced pod drilling production at its advanced Lesedi Coal Bed Methane project. According to a production report from the company this week, drilling of lateral wells at the Lesedi CBM project has recommenced. “Specialist directional drilling crew and other key personnel are now on site,” the company said, adding that the project currently has sufficient gas reserves for an initial development of 10MW. Tlou has been optimistic on its drilling developments: “Thus far, drilling operations at the Lesedi CBM Project have been progressing according to plan,” said Tlou Managing Director Tony Gilby. Meanwhile Tlou Energy has participated in government’s request for proposal (RFP) for the supply of up to 100MW of CBM generated power. As the company awaits a response from government, it has also entered into discussions with other potential off takers of gas and power as well as potential financiers of the downstream development. However, Tlou says the latter is subject to securing an appropriate Power Purchase Agreement (PPA). On the other hand an Environmental Impact Assessment (EIA) for the downstream development of the power generation facility and transmission lines were submitted late last year. The comprehensive report required extensive consultation with all stakeholders and timely approval of the EIA will facilitate the implementation of the downstream power generation plant on the CBM project.