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First Development Pod Successfully Completed

Source: www.gulfoilandgas.com 2/12/2019, Location: Africa

Tlou Energy Limited, the ASX, AIM and BSE listed company focused on delivering power in Botswana and southern Africa through the development of coal bed methane ('CBM'), has successfully completed the drilling of the Lesedi 3 development pod at its CBM project in Botswana.

Highlights
- Lateral wells Lesedi 3A and Lesedi 3B have been successfully completed with both wells intersecting with the vertical well Lesedi 3P to complete the Lesedi 3 development pod.
- Dewatering and gas flow testing at Lesedi 3 will commence following the installation of production equipment.
- The drill rig is being moved to the second planned production pod, Lesedi 4.

Pilot well drilling program
The Company commenced drilling of development wells at its gas field in late 2018. The wells are being drilled as 'dual lateral pods', comprising a single vertical production well intersected by two lateral wells. The lateral wells are being 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. 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',

The Company can confirm that drilling operations at Lesedi 3 have been completed. Lateral well Lesedi 3A was drilled ~1,437m Measured Depth (MD) and Lesedi 3B was drilled ~1,440m MD with both lateral wells successfully intersecting with vertical well Lesedi 3P to complete the dual lateral pod.

Lesedi 3 is now being prepared for installation of production facilities prior to the commencement of de-watering and lowering of the pressure in the coal seam to achieve gas flow.

The drilling rig is being moved to commence drilling of the second planned development pod, Lesedi 4. The Company will provide further updates as the drilling operations progress.

The development drilling program is being conducted in accordance with health and safety requirements and are consistent with the Company's approved environmental impact statement. If results are positive, these wells will form part of the Company's initial gas-to-power project which will include installation of transmission lines and grid connection.

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