Tlou Energy Limited (ASX: TOU) reports the completion of two development pods including six wells at the Lesedi CBM Project in Botswana.
In the announcement dated 18 March 2019, Tlou Energy Limited announced that it has drilled the complete set of three wells each at Lesedi 3 and Lesedi 4 development pods in its recently completed field drilling program. The drilling activities have observed strong gas indications with encouraging initial water flow across both the pods located near to Tlou’s proposed power generation and central gas gathering facility.
Tlou’s Managing Director, Tony Gilby, stated that it is very encouraging to complete drilling program and achieve strong gas indications. Mr. Gilby added that the significant water flow was also observed which is above than the previously observed levels at Selemo. It seems to be prospective of good permeability and accordingly enabling a decent gas flows in the geologically high?graded region. The timely completion of wells and that too on budget underscores an efficient team of field staff putting forward their great effort to achieve the organization’s objective.
Tlou purchased a substantial amount of equipment to commence its drilling program and enable the Group to have better control over costs and timing of the program. As a result, the company confirmed the drilling of all wells in the current program being completed on time with expenditure to date in line with the budget.
The report read that the massive amount of gas bubbled from production wells on the intersection of the lateral well to the vertical production wells. It was observed at both the wells, Lesedi 3P and 4P. At Lesedi 4, Tlou aimed the upper region of the coal seam which seems prospective for further drilling campaigns and if integrated with recently accessed structural trends, may reportedly provide the key to unveil substantial amounts of new gas reserves.
Going forward, the company intends to continue the de-watering expecting to receive the first indications of controlled gas pressure increase in the second quarter of 2019.
Tlou Energy Limited is into the business of energy generation primarily focused on delivering power in an energy shortage region, Botswana, and southern Africa. It owns and operates projects that develop energy using coal bed methane (CBM) natural gas. Moreover, the company is listed on three securities exchanges including the Australian Securities Exchange, London’s AIM market, and the Botswana Stock Exchange.
TOU is a 100% owner of the Lesedi CBM Project which produces power using domestic gas. The company further plans to initiate a gas?to?power project, and if this maiden scalable project goes successful, Tlou would reportedly evaluate longer-term CBM electricity generation programs in Botswana to neighbouring countries.
Tlou stock price traded flat on 18 March 2019. The stock last traded at $0.097 with a market capitalisation of $39.68 million. Over the past 12 months, the stock has witnessed a negative performance change of 30.24% despite the surge of 7.78% in the past three months.
This website is a service of Kalkine Media Pty. Ltd. A.C.N. 629 651 672. The website has been prepared for informational purposes only and is not intended to be used as a complete source of information on any particular company. Kalkine Media does not in any way endorse or recommend individuals, products or services that may be discussed on this site. Our publications are NOT a solicitation or recommendation to buy, sell or hold. We are neither licensed nor qualified to provide investment advice.
There is no investor left unperturbed with the ongoing trade conflicts between US-China and the devastating bushfire in Australia.
Are you wondering if the year 2020 might not have taken the right start? Dividend stocks could be the answer to that question.
As interest rates in Australia are already at record low levels, find out which dividend stocks are viewed as the most attractive investment opportunity in the current scenario in our report.