Tuesday, September 18, 2018
Tlou Energy’s Lesedi CBM project in Botswana saw site preparation work commence for its first pilot production well. The company said that all well location have been agreed to, scouted, and inspected. The company is currently waiting on the final pieces of equipment to arrive onsite prior to spudding the first well in October.
Tlou said that if its wells are successful it will form part of its initial gas-to-power project which will include installation of transmission lines and grid connection.
Preparations are currently underway with pre-mobilization activities to ensure adequate site clearing and construction of well-site facilities, as well as ensuring a nearby core-hole that has been drilled is adequately plugged and abandoned prior to spudding of the first well.
To maximize efficiencies, the vertical production wells and top-hole sections of lateral wells will initially be drilled, once the last of the long lead items for this stage of the program are onsite which is scheduled for early October. Up to three production pods (comprising three wells per pod) are currently planned.
The wells will be drilled as dual lateral pods, comprising of a single vertical production well, intersected by two lateral 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.
Tlou is planning a gas-to-power project whereby gas from its Lesedi CBM project will be used for power generation, and this power sold into the power market within Botswana and/or across the Southern African Power Pool (SAPP).
An initial development of up to 10 MW is planned. This will start with the first 2 MW of power which can then be expanded thereafter as further drilling is conducted and additional gas becomes available. With significant gas reserves already in place, the company can readily expand upon successful implementation of the initial project.
The dual lateral pods will be located in the area where the initial gas-to power project will be situated, subject to success.
The Lesedi CBM project will require connection to the local power grid. This connection is planned to be made at the town of Serowe, which is located approximately 100 km from the Lesedi CBM project. A draft transmission line route has been determined with negotiations ongoing with the regional and local land boards and the environmental impact assessment approval process continuing.
The company plans to sell power to potential customers, either on the spot marketor through Power Purchase Agreements (PPA) with one or more customers. Sale of power is planned to be through the Botswana power grid which facilitates the sale of power within Botswana and regionally via the SAPP. Other options available to Tlou to sell gas include potential CNG or small-scale LNG projects that have been proposed to the company by third parties including the use of natural gas as feedstock for manufacturing.