Tlou Energy Ltd Operations Update - Excellent Progress at Lesedi (8727H)
November 20 2018 - 1:01AM
UK Regulatory
TIDMTLOU
RNS Number : 8727H
Tlou Energy Ltd
20 November 2018
20 November 2018
Tlou Energy Limited
("Tlou" or "the Company")
Operations Update - Excellent Progress at Lesedi
Tlou Energy Limited, the ASX, AIM and BSE listed company focused
on developing gas-to-power projects in southern Africa using coal
bed methane ("CBM") natural gas from its field in Botswana, is
pleased to provide an update on drilling operations at the Lesedi
CBM Project.
Key Points:
-- Drilling at the Lesedi CBM Project is making excellent progress and is on budget;
-- The second vertical well in the program 'Lesedi 4P' has been
drilled and reached a total depth of 577m having encountered a very
good target coal horizon;
-- Top-hole drilling has been completed at the third vertical well 'Lesedi 5P';
-- Top-hole drilling is progressing at the first lateral well 'Lesedi 3A'.
Update of Drilling operations
Tlou Energy Limited is currently drilling pilot production wells
at the Lesedi CBM Project ('Lesedi') in Botswana. If successful,
these wells will form part of the Company's initial gas-to-power
project which will include installation of transmission lines and
grid connection. The wells are located in close proximity to the
Company's planned central processing facility.
The wells will be drilled as 'dual lateral pods', comprising a
single vertical production well, intersected by two lateral (or
horizontal) wells. The lateral wells will be 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.
Up to three pods are planned. 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' and pod three is designated 'Lesedi 5'.
Vertical production wells Lesedi 3P and Lesedi 4P have been
completed. The Lesedi 5P top-hole section has also been drilled.
This pod will be completed subject to results from Lesedi 3 and 4
in order to retain optionality. Following completion of the
top-hole section of Lesedi 5P, drilling of the top-hole section of
lateral well Lesedi 3A commenced.
The drilling program will continue over the coming weeks and
into early 2019. Once all six wells for pods one and two have been
drilled, these pods will be completed using a separate workover rig
and surface production facilities will be installed. The wells will
then begin production testing to de-water and lower the pressure in
the coal seam to achieve gas flow. The Company will provide further
updates as the drilling program progresses.
Other
In October 2018 the Company submitted a response to a 100MW CBM
Request for Proposal from the Government of Botswana, as outlined
in the market announcement on 10 October 2018. The Company is
awaiting feedback in relation to this and looks forward to
providing an update to the market as soon as possible.
The information communicated within this announcement is deemed
to constitute inside information as stipulated under the Market
Abuse Regulations (EU) No. 596/2014. Upon the publication of this
announcement, this inside information is now considered to be in
the public domain.
For further information regarding this announcement please
contact:
Tlou Energy Limited +61 7 3012 9793
Tony Gilby, Managing Director
----------------------
Solomon Rowland, General Manager
----------------------
Grant Thornton (Nominated Adviser) +44 (0)20 7383 5100
----------------------
Samantha Harrison, Colin Aaronson, Harrison
Clarke, Seamus Fricker
----------------------
Shore Capital (Broker) +44 (0) 207 408 4090
----------------------
Jerry Keen, Toby Gibbs, Mark Percy
----------------------
FlowComms Limited (Investor Relations) +44 (0) 7891 677 441
----------------------
Sasha Sethi
----------------------
Company Information
Tlou Energy is focused on delivering Gas-to-Power solutions in
Botswana and southern Africa to alleviate some of the chronic power
shortage in the region. Tlou is developing projects using coal bed
methane ("CBM") natural gas. Botswana has a significant energy
shortage and generally relies on expensive imported power and
diesel generation to fulfil its power requirements. As 100% owner
of the most advanced gas project in the country, the Lesedi CBM
Project, Tlou Energy provides investors with access to a compelling
opportunity using domestic gas to produce power and displace
expensive diesel and imported power.
The Company is listed on the Australian Securities Exchange,
London's AIM market and the Botswana Stock Exchange and is led by
an experienced Board, management and advisory team including
individuals with successful track records in the CBM industry.
Since establishment, the Company has significantly de-risked the
project in consideration of its goal to become a significant
gas-to-power producer. The Company flared its first gas in 2014,
holds a Mining Licence and nine Prospecting Licences, covering an
area of 8,300Km(2) in total. The Lesedi and Mamba Projects already
benefits from significant independently certified Contingent Gas
Resources of 3 trillion cubic feet (3C) and independently certified
Gas Reserves of 41 billion cubic feet (2C) and 426 billion cubic
feet (3P).
The Company is planning an initial scalable gas-to-power
project. Following successful implementation of this first scalable
project, the Company looks forward to evaluating longer-term
prospects for the delivery of electricity generated from CBM in
Botswana to neighbouring countries.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
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