Tlou Energy To Commence Gas Flow Testing In Botswana

tlou Tlou Energy said in it will undertake rate gas testing programme at its Botswana gas exploration project during the month of December 2015. This follows encouraging production data to date which is in line with what “our reservoir engineers had anticipated prior to commencement of the testing process, with well behaviour and water production consistent with expectations”.

The company revealed that the original Selemo lateral production pod (Selemo 1) was recently expanded with drilling and installation of two new flanking lateral pods either side of it (Selemo 2 and Selemo 4) to assist with dewatering and ultimately enhance gas deliverability.

On the other hand, the dewatering operations commenced in mid-September 2015 and the wells have now been dewatering for approximately 60 days. The dewatering proceeded in a controlled manner with all three wells now below the Critical Desorption Pressure (CDP) and steadily building wellhead pressure.

Now with the new data, Tlou will commence the testing phase. “The aim of the testing program will be to ensure that the maximum sustainable gas production rate is achieved. This process will also provide vital data on well performance which can then be incorporated into large scale field development.”

“The performance of the wells to date has been very encouraging and in the event that this continues as anticipated, the Company will be in a position to book reserves, further its downstream development options, and enhance value for shareholders,” added the company.

The company also said in addition to the favourable data at the Selemo operations, Tlou has made significant progress on its downstream plans for the development of gas-to-power projects in Botswana.

It said over the past two months, it has had discussions with a number of power development, investor and lender groups, mainly based in the United Kingdom and Europe where there is a strong appetite for African based projects.

“There is considerable interest from these groups to partner with Tlou to initially develop a 10 MW gas-to-power project in Botswana and thereafter further expand to cover the chronic energy supply shortfalls being experienced in Botswana and throughout Southern Africa,” revealed the company.

“Concurrently, the company is making progress in its discussions with the Botswana government with regard to the required agreements, authorisations and permits required for operation of combined gas-to-power projects in the country.”

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