LONDON (ShareCast) - (Sharecast News) - Botswana-focussed coal bed methane developer Tlou Energy has started production testing at its Lesedi 3 development pod, it announced on Monday, adding that "excellent progress" was also being made on drilling operations at the second development pod, Lesedi 4.
The AIM-traded firm said drilling operations at the Lesedi 3 development pod were completed earlier in February.

Production equipment had been installed. and production testing was now underway.

Tlou explained that production testing involved the de-watering and lowering of pressure in the coal seam to achieve gas flow.

Testing procedures would continue over the coming months, with initial performance data expected in the second quarter, the board said.

Drilling had also been completed on the first of two lateral sections - Lesedi 4A - of the Lesedi 4 development pod.

Lesedi 4A was drilled to around 1,435 metres measured depth. and successfully intersected with vertical production well Lesedi 4P.

Drilling of the second lateral well - Lesedi 4B - was ongoing.

That well was planned to be the final well in the current drilling phase, Tlou said, adding that it would provide further updates as the drilling operations progressed.

"The company commenced drilling of development wells at its gas field in late 2018," the directors said in their statement.

"The wells are being drilled as 'dual lateral pods', comprising a single vertical production well intersected by two lateral wells."

Tlou said the lateral wells were being drilled through the gassy coal seam. with gas extracted from the coal produced through the vertical production well, where it could be gathered and used for power generation.

"Pod one is designated 'Lesedi 3' and comprises a vertical production well - 'Lesedi 3P' - and two lateral wells - 'Lesedi 3A' and 'Lesedi 3B'," the board added.

"Pod two is designated 'Lesedi 4'."

Tlou said the development drilling program was being conducted in accordance with health and safety requirements. and was consistent with its approved environmental impact statement.

If results were positive, the wells would form part of its initial gas-to-power project, which would include installation of transmission lines and grid connection.

"The gas-to-power tender submitted by the company to the government of Botswana is still being assessed by government," Tlou Energy confirmed.

"The company remains confident that an update will be provided in the near term."

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