Tlou Energy says a decision on a gas-to-power pilot project has progressed through various levels of government and management is confident of a favourable response in the near term.
In the latest market update, Acting Managing Director of the natural gas explorer, Gabaake Gabaake said they have had discussions with relevant Government parties in relation to “our application for a gas-to-power pilot project in Botswana”.
“We are awaiting feedback and remain extremely confident of a positive response in the near term,” the former permanent secretary in the energy ministry said. “Our team is working very hard and we remain on target to deliver on our goals. I look forward to providing further updates in the near term.”
According to the company, testing procedures have been expanded to include the Selemo 2 and Selemo 4 wells in addition to Selemo 1 which commenced flow testing in Q1 2016.
Tlou added that pressure drops at the wells have been increased in recent days and encouragingly further communication between the wells is being observed. Water production, increased due to the flow testing of the additional wells, is being easily managed and is in line with expectation.
“Excellent progress is being made in the field. The decision to expand the testing to include three wells rather than the initial one well was taken following the results observed while flowing gas from Selemo 1 only and the excellent communication being observed between all the Selemo wells,” Gabaake stated.
“The initial plan was to flow sustained gas from Selemo 1 and then proceed to build flows from Selemo 2 and 4. This method was chosen by our production consultants based on knowledge gained from other reservoirs and also to reduce any potential risk of damaging the reservoir with a more aggressive strategy,” he said.
He said the production data has since indicated however, that it is possible to bring on all three wells concurrently without significant risk of damaging the formation or jeopardising the chances of flowing gas at economic levels from Selemo. Although still at an early stage, the data gathered to date is very promising and is some of the best we have seen since we commenced flow testing. As a result we remain excited and confident of delivering a sustained gas flow shortly.