Tlou Energy (LSE:TLOU) released an update on progress at its Lesedi coal bed methane (CBM) project in Botswana today. The company is focused on developing gas-to-power projects in Botswana and other parts of Southern Africa, a region that suffers from chronic power shortages. Tlou Energy owns the most advanced gas project in Botswana and is planning an initial scalable gas-to-power project.
Drilling is now underway at Lesedi, and the company reports that its second vertical well (Lesedi 4P) has been drilled to 577m and has encountered a ‘very good’ target coal horizon. Top hole drilling has been completed at the third vertical well (Lesedi 5P) and is progressing at the first lateral well (Lesedi 3A).
The wells will comprise of a single vertical production well intersected by two lateral (or horizontal) wells. The gassy coal seam will be drilled via two lateral wells, with gas extracted produced through the vertical well where it can be gathered and used for power generation. Tlou calls this formation a ‘dual lateral pod’ and plans to drill three of them, ‘Lesedi 3’, ‘Lesedi 4’, and ‘Lesedi 5’. Lesedi 5 will be completed subject to results from Lesedi 3 and 4.
Earlier this month the company reported the successful drilling of the first vertical well, Lesedi 3P. The well intersected the Lower Morupule coal seam, the target seam for the dual lateral wells which are planned to be drilled for approximately 700m in-seam intersecting the vertical Lesedi 3P well.
The drilling program is expected to continue into early 2019. Once all six wells for pods one and two have been drilled, these pods will be completed using a separate workover rig and surface production facilities will be installed.