Tlou Energy Readies For Lesedi CBM Project Development

Pauline Dikuelo | Monday January 21, 2019 12:53

This follows the company’s successful drilling of the vertical wells and the top-hole sections for the new production pods at the Botswana-based project.

Tlou’s managing director, Tony Gilby, said in a company update that following the completion of lateral wells at Lesedi 3A and 3B, as well as Lesedi 4A and 4B, the production pods will be completed using a separate work over rig ahead of installation of surface production facilities including water evaporation ponds.

“All of the production pods are being drilled in the same area as has been proposed for the initial project development and are aimed at confirming the gas flows in this area as well as ensuring production readiness prior to commencement of development operations,” he said.

The company stated that dewatering and production testing activities would then begin immediately following the completion of the production pods. Last year, Tlou Energy submitted a comprehensive response to the Government ’s Request for Proposal (RFP) for the supply of up to 100MW of CBM generated power and is still awaiting response.

According to the MD, whilst the tender evaluation process is ongoing, they have entered into discussions with other potential off-takers of gas and power as well as potential financiers of the downstream development subject to securing an appropriate Power Purchase Agreement (PPA).

Tlou also last year submitted an Environmental Impact Assessment (EIA) for the downstream development of the power generation facility and transmission lines.“This was a comprehensive report that required extensive consultation with all stakeholders. Timely approval of the EIA will facilitate the implementation of the downstream power generation aspect of the project,” Gilby said, adding that the drilling operations at the Lesedi CBM project have been progressing according to plan.

“Following the Christmas break, our field team has re-mobilised and has now recommenced drilling activity to complete the production pods at Lesedi from which we intend to produce gas to potentially supply initial stages of our proposed CBM gas-to-power project,” he said.

Tlou Energy Limited is focused on developing gas-to-power projects in southern Africa using  CBM” natural gas from its gas field in Botswana.