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Lesedi Pods Achieve Sustained Gas Flows

Source: www.gulfoilandgas.com 8/22/2019, 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) is delighted to announce that sustained gas flow rates have been achieved at both the Lesedi 3 and Lesedi 4 production pods.

Highlights
- Lesedi 3 and 4 have each achieved an initial sustained gas flow of approximately 20 thousand cubic feet per day (Mcfd);
- Rates are anticipated to increase steadily, leading to a peak and commercial flow rate;
- First electricity sales are targeted for next year.

Production Update
The Lesedi gas production pods are performing strongly. As planned, water rates in both pods have continued to decline, with both Lesedi 3 and 4 production pods having successfully commenced flowing sustained rates of gas.

Following completion of the first phase of production testing, including initial dewatering, reaching critical gas desorption point and commencing gas production, the pods are now producing sustained gas flows with initial rates of approximately 20 Mcfd from each pod. As with most new CBM developments this rate is anticipated to steadily increase, following further reduction of pressure in the coal and additional dewatering, with the aim to reach a peak and commercial gas flow rate.

Lesedi 4 was drilled approximately one month after the Lesedi 3 pod, with a similar approach taken at both pods to drawdown pressure to allow gas to flow in a controlled manner. The processes being followed at both Lesedi gas production pods are expected to lead to long-term sustained gas flows which should build further over time.

The Company is very encouraged by production data and well performance to date and look forward to providing further updates in due course.

With CBM projects not yet established in this region, Tlou could pioneer CBM development in the area. Successful results from this project could potentially impact a whole new CBM basin in Botswana and be a significant boost not only for Tlou, but for the whole region, with the potential for Tlou to possibly supply power within Botswana and also into neighbouring countries via the Southern African Power Pool.

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