Continental Focus, International Reach

Tlou Progressing on Botswana CBM Project

Wednesday, November 21, 2018

Tlou Energy’s Lesedi CBM project in Botswana is moving ahead at a good clip. According to the company it is making ‘excellent progress and is on budget.’

The second vertical well in the program, the Lesedi 4P, has been drilled to a total depth of 577 meters and encountered a very good target coal horizon.

Tlou has also completed top-hole drilling on the third vertical well and the first lateral well, the Lesedi 5P and Lesedi 3A wells respectively. If successful, these wells will form part of the company’s initial gas-to-power project which will include installation of transmission lines and grid connection. The wells are located in close proximity to the company’s planned central processing facility.

The wells will be drilled as ‘dual lateral pods’, comprising a single vertical production well, intersected by two lateral (or horizontal) wells.  The lateral wells will be drilled through the gassy coal seam, with gas extracted from this coal produced through the vertical production well where it can be gathered and used for power generation.

Up to three pods are planned.  Pod one is designated ‘Lesedi 3’ and comprises a vertical production well (‘Lesedi 3P’) and two lateral wells (‘Lesedi 3A’ & ‘Lesedi 3B’).  Pod two is designated ‘Lesedi 4’ and pod three is designated ‘Lesedi 5’.  Vertical production wells Lesedi 3P and Lesedi 4P have been completed.  The Lesedi 5P top-hole section has also been drilled.  This pod will be completed subject to results from Lesedi 3 and 4 in order to retain optionality.

The drilling program will continue over the coming weeks and into early 2019. Once all six wells for pods one and two have been drilled, these pods will be completed using a separate workover rig and surface production facilities will be installed. The wells will then begin production testing to de-water and lower the pressure in the coal seam to achieve gas flow. The Company will provide further updates as the drilling program progresses.

In October 2018 the company submitted a response to a 100 MW CBM Request for Proposal from the government of Botswana, as outlined in the market announcement on 10 October 2018. Tlou is awaiting feedback in relation to this and looks forward to providing an update to the market as soon as possible.