Australia's Tlou Energy Significantly Upgrades Gas Resources for Botswana CBM Project

Australia listed Tlou Energy on Thursday announced a significant upgrade in Contingent Resources for its 100 percent owned Lesedi CBM Project in Botswana.

The Lesedi CBM project’s prospecting licenses extend for approximately 3,800 km2 in the Karoo Kalahari Basin, southeastern Botswana.

The upgrade follows an independent review of the Lesedi project located in PL001/2004 and PL002/2004 by the certifier SRK Consulting (Australasia) Pty Ltd (SRK) of Brisbane, Australia.

The 2C and 3C Contingent Resources have been upgraded by 57 percent and 42 percent respectively and stand at 239 Bcf and 3296 Bcf.

Commenting on the announcement, Managing Director Tony Gilby said, “This Contingent Resource upgrade represents a significant de-risking of the project and is a precursor to commercial reserves that are expected later in 2015 post additional successful production testing.”

In March this year, Tlou Energy entered into a gas sales co-operation agreement with CNG Holdings (Pty) Ltd, a South African based company which supplies compressed natural gas (CNG) to industrial users and vehicle fleets.

Sale of gas by Tlou Energy to CNG Holdings will be for compression, transport and on-sale of CNG to industrial customers in Botswana and South Africa via road transport.