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 Tlouâs proposed power generation and central gas gathering facility.
Tlouâs 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 beÂ 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 organizationâs 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,Â 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, Londonâs AIM market, and the BotswanaÂ StockÂ Exchange.
TOU is a 100% owner of the LesediÂ CBMÂ 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.
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