TLOU ENERGY ADVANCES IN GAS PRODUCTION
Tlou Energy, the coal bed methane company will start testing the last stage of gas production in the second quarter after completion of the drilling process at Lesedi project. The BSE listed company stated that production testing involves de-watering and lowering of the pressure in the coal seam to achieve gas flow. “Production equipment has been installed and production testing is now underway. Testing procedures will continue over the coming months with initial performance data expected in Q2 2019,” states the company. Tlou Energy is focused on delivering gas -to -power solutions in Botswana and Southern Africa to alleviate some of the chronic power shortage in the region by using coal bed methane natural gas. In a statement, the company said drilling has been completed on the first of two lateral sections of Lesedi 4 development pod which measured 1.435metres depth and has successfully intersected with vertical production well while drilling of the second lateral well is ongoing. “This well is planned to be the final well in the current drilling phase.”Last year, Tlou Energy re-submitted a comprehensive response to the Government ’s Request for Proposal (RFP) for the supply of up to 100MW of CBM generated power and is still awaiting response. Giving an update in the last quarter, Tlou Energy Managing Director Tony Gilby said whilst the tender evaluation process is ongoing, they have entered into discussion with other potential off-takers of gas and power as well as potential financiers of the downstream development subject to securing an appropriate Power Purchase Agreement (PPA).