Tlou Energy Limited, the AIM and ASX listed natural gas explorer says there has been an upgrade on reserves at its advanced Lesedi CBM Project in Botswana. It also announced initial Reserves for the Mamba Project.
The company said the reserves assessment, which have been independently certified by Dr Bruce McConachie of SRK Consulting (Australasia) Pty Ltd, showed that there has been a 44% increase in 2P (Proved and Probable) Gas Reserves to 3.9 billion cubic feet (BCF).
There has also been 390% increase in 3P (Proved, Probable and Possible) Gas Reserves to 261 BCF. According to the company, the increases comprise additional certified Reserves in the Lesedi Project area (PL 002) based on a southern extension of the Selemo pilot area and initial certified Reserves in the Mamba Project area (PL’s 238 and 240) based on a western extension of the Selemo pilot area.
Tlou Managing Director, Tony Gilby said the significant upgrade in Reserves reinforces the commerciality of the Lesedi Gas Project. He added that the success of the Selemo pilot in producing sustained gas flows for a substantial period suggests that there is significant gas production potential for the area.
“Our ongoing work to assess this continues in tandem with our planning for the staged delivery of a commercial CBM power facility, for which we have received a detailed Request for Proposal from the Government of Botswana,” Gilby said.
“We are very pleased to have received the first gas Reserves in the Mamba Project area, which demonstrates the upside available within our portfolio. Together, we believe that the Lesedi and Mamba projects will continue to develop into a valuable resource for Tlou shareholders as we work towards increasing the certified gas Reserves in both areas. Furthermore, the company is on track to become the first gas to power producer in Botswana.”
In accordance with the Society of Petroleum Engineers (“SPE”) 2007 Petroleum Resource Management System (“PRMS”) Guidelines, as well as the 2011 Guidelines for Application of the PRMS approved by the SPE, SRK has attributed Gas Reserves to Tlou’s 100% interest in the Lesedi and Mamba Project permits using the deterministic method of petroleum Reserves estimation as at January 01, 2017.
Tlou’s Gas Reserves have not been adjusted for fuel or shrinkage and have been calculated at the wellhead (which is the reference point for the purposes of ASX Listing Rule 5.26.5) for the Lower Morupule seam only.
The energy content of the gas was determined by SRK at different quantities for the Lower Morupule coal seam based on corehole gas composition in the individual areas where Reserves were certified.