Tlou Energy provides update on Selemo Pilot gas flow tests

tlou Tlou Energy has provided results of gas flow testing at the Selemo Pilot which showed it achieved peak gas flow during production testing of approximately 395,000 cfd (cubic feet per day).

The company said it was encouraged by the build-up of pressure in the lateral well head since the system was shut-in post the short term production test.

According to the unconventional gas outfit, the results to date suggest that the economic threshold for a potential development has been met when all key factors are taken into consideration.

Tlou initially began to flare gas at Selemo in November 2014 with the rate building as the well bore environment was gradually brought into equilibrium with atmospheric conditions.

“A decision was made in early December 2014 to determine the gas flow potential of the well by conducting short term tests as part of the longer term testing process.”

The Selemo Pilot was then shut-in to allow pressure build-up data to be accumulated and assessed prior to the recommencement of longer term production testing in early


According to the results, Test 1 of the Selemo Pilot flow time ran for 16.5 minutes while Test 2 ran for 15 minutes.  Gas produced during test flow stood at 53.2 m3 for Test 1 and 57.7 m3 for Test 2.

Peak Gas Rate observed during test for Test 1 stood at 395,300 cfd and 371,800 cfd for Test 2 while Average Gas Rate for test period during Test 1 stood at 164,000 cfd and 196,000 cfd for Test 2.

According to Tlou Energy, Selemo Pilot is the first in Botswana to flow CBM gas at these rates (as far as the company is aware and based on publicly available information).

It added that although this was a short term flow test, such a test can still provide a relatively reliable estimate of flow rate capability once wells are in production.

The company said testing operations will continue at the four pilot locations, currently in various stages of gas and water production, to advance ongoing gas sales agreement negotiations and reserve certification.

These activities will serve to underpin Tlou Energy’s planned field development objectives at the Lesedi CBM Project in Botswana.

Anthony (Tony) Gilby, Managing Director of Tlou Energy stated that he was highly encouraged by the results achieved at the Selemo Pilot to date.

“With high expected gas prices driven by diesel replacement and low capital / operating costs relative to the Australian CBM industry, the results suggest that a commercial development is achievable,” he said.


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