Australia's Tlou Energy Inching Towards Gas Production at Botswana CBM Project

Australia listed Tlou Energy said Tuesday that Lesedi and Selemo pilot pods at its Lesedi CBM Project in Botswana continue to dewater and gas production is expected soon.

The company said that the two pods are gradually approaching the theoretical critical gas desorption pressure (CDP), with the Lesedi Pod being the closest to CDP.

The de-watering process is taking longer than originally anticipated due to higher well productivity compared to initial estimates, the company said.

According to Tlou, indications from both pilot pods remain positive with steady water production necessitating a gradual increase in lift capacity.

Three core-holes will be drilled as part of Tlou’s 2014 drilling program.

Production will also allow the company to certify Proved and Probable coal seam gas reserves.

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