Tlou Energy Limited, the AIM and ASX listed company says it has resumed gas testing programme at its Lesedi CBM Project in Botswana as it moves to provide evidence of a sustainable gas production rate achievable from the field and develop the first wells flowing commercial rates of gas in the country.
According to the company, which is focused on delivering power in Botswana and Southern Africa through the development of coal bed methane (CBM), Selemo 4 gas production exceeded expectations and potentially a second key gas producer alongside Selemo 1.
Tlou Acting Managing Director, Gabaake Gabaake said following on from their encouraging initial gas flows at Lesedi, the data received from the Selemo 4 well is extremely encouraging with gas production exceeding expectations.
He said positive gas flows have already been achieved from Selemo 1 and they are encouraged that significant gas is still expected to flow from the lateral wells.
“These positive results follow the recent announcement from the Botswana government that it is proposing the delivery of 100MW of CBM power to be incorporated into its future generation supply plans, which is particularly significant for Tlou as we are developing the most advanced CBM project in Botswana. I look forward to providing further updates on the progress of our gas flow testing in due course,” Gabaake said.
Gas flow testing is continuing at the Lesedi CBM Project in Botswana. As reported previously a sustained gas flow was achieved from the main producing well Selemo 1, with the shielding wells Selemo 2 and 4 successfully shielding water from the formation.
Following the commencement in April 2016 of drawdown in all Selemo wells, Selemo 4, drilled as the northerly shielding well, has now also demonstrated sustained gas flows.
“This is a very favourable outcome and far exceeded the Company’s expectations with the potential to be a second key gas producing well in the Selemo area. Selemo 4 is still in the well desorption stage and is expected to continue to produce enhanced gas rates with further dewatering.”
At Selemo 1, the central and main producing well, the operations team recently conducted a workover to clear coal fines at the intersection of the vertical and lateral wells, which can cause reduced communication between the well pair.
“This is a common operating procedure with CBM wells where water is pumped down the vertical well and along the coal seam though the lateral well. Gas production testing from Selemo 1 was temporarily discontinued during this procedure and has now recommenced.”
Following the workover, pumping and metering equipment has been installed on the lateral end of the Selemo 1 pilot pod. This facilitates production of gas from both the vertical producer and also the lateral end of the pod if necessary. This is advantageous as gas can still be recorded from both wells even in the event of reduced communication between lateral and vertical sections.
Selemo 2, the most southerly of the Selemo wells, drilled as a shielding well to keep water out of the formation, is performing as planned. This well has also flown gas, although not expected to produce at rates as significant as the main Selemo 1 well or now Selemo 4, as the lateral section intersects less coal than the other two wells due to the geology of the area.
Flow rates from the lateral section of a well are expected to be far greater than that of a vertical well. The rates already achieved have been very positive, although to date they have predominately been from the vertical sections of both the Selemo 1 and Selemo 4 wells. At Selemo 1 this is due to the communication restriction that was limiting the flow from the lateral section. In the case of Selemo 4 it is due to the fact that the coal seam has not yet been fully dewatered having gone into production testing later than Selemo.
“Therefore, with positive gas flows already achieved the Company is encouraged by the fact that significant gas is still expected to flow from the lateral sections of the wells. These will be key rates and should they be in line with expectations the additional flows from these lateral sections will be transformational for the Company.”
“In the near term Tlou will monitor flow rates at Selemo 1 from both the lateral and vertical wells to build on the rates already achieved. In addition the Company will continue to dewater the coal seam at Selemo 4 to enhance the flow rate to commercial levels.”