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Sunday, February 28, 2016
Tlou Energy has commenced gas production testing from the Selmo 1 pilot well on its Lesedi CBM Project in Botswana. The aim of the gas testing program is to provide evidence of a sustainable gas production rate achievable from the field and develop the first wells flowing commercial rates of gas in Botswana.
Long term gas testing is underway with the two new wells either side of Selemo 1 successfully shielding water from the central and main producing well. Tlou said that the initial results at Selemo 1 are very encouraging having achieved extended periods of consistent gas flow in line with management expectations and sustained flows anticipated imminently.
Incremental pressure drops are being carried out with changes in lateral wellhead pressure suggesting gas production rates will continue to increase. The data will be incorporated into field development plans, as part of on-going off-take agreement negotiations and towards the first independent gas reserve certification in Botswana.
Tlou Acting Managing Director Gabaake Gabaake said, “We are pleased to report that initial gas flows are very encouraging and mark an important step towards our goal to demonstrate sustained gas production from Lesedi. We expect to announce a series of updates in the coming weeks which will provide the key data required to book independently certified reserves, thereby de-risking the project further. Moreover, this data will provide further confidence to strategic off-takers whom we are currently in advanced discussions with regard to gas supplies.
“To date, exploration and development has been focused on a specific area of Lesedi, being the Selemo pilot. However, the data we gain from sustained gas flows at Selemo will be valuable as we model the broader area in line with our vision to become a significant provider of energy in the region.Demand for domestic power remains high and as the most advanced gas project of its kind in the country, we are well placed to capitalize on this demand. I look forward to providing regular updates on the gas production testing operations at Selemo in the near future.”
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