Tlou Energy Limited has provided an update on operations at the Lesedi CBM project in Botswana. The Lesedi CBM Project area includes the Lesedi Pod (which commenced dewatering on 5 December 2013) and the Selemo Pod (which commenced dewatering on 17 November 2013).

According to the company, the dewatering process on the Lesedi and Selemo gas production pilot wells is continuing with greater than expected water flows requiring the pump lift capacity on the wells to be increased. Usually good water flows are a positive sign and this is the current interpretation for the Lesedi CBM project.

Tlou estimates based on current production data and advice from its pilot production contractors, that first gas breakthrough should occur prior to the end of March 2014. Once first gas breakthrough is achieved, it will then take a period of time to establish peak gas flows.

“Experience suggests that it is important not to rush the dewatering process otherwise formation damage may occur that is often irreparable. Since the pilot gas production wells began to dewater late in 2013, the coal reservoir has been carefully managed so as to minimize formation damage. All technical data is continuing to suggest that Lesedi and Selemo will be good gas producers with time,” Tony Gilby, Managing Director of Tlou, said.

2014 Drilling Program

As previously announced, three core-holes will be drilled in 1Q14 as part of Tlou’s 2014 drilling program. Key contracts for the provision of drilling, desorption services, laboratory services and wire-line logging have all been executed.

Minor delays in starting the core-hole drilling program are anticipated to be resolved by the end of the week. Tlou currently anticipates that the first core-hole will commence shortly thereafter.