TLOU Energy Limiteds (LON:TLOU) quarterly update highlighted “an excellent start” to flow testing at its Botswana coal bed methane wells.
The company, in a statement, told investors it is very encouraged by production data to date.
Flows continue and the company noted that, like most new CBM wells, the Lesedi operation is expected to see increasing rates as pressures in the coal continue to reduce with additional dewatering.
It said the aim is to reach a peak and commercial gas flow rate as soon as possible.
READ: Tlou hails “highly active” year as CBM project advances[hhmc]
Right now, the pressure is being maintained as water flows continue to reduce – thus making the wells saturated with the methane gas – and, in time, the pressure will lower to the optimal level and then a significant increase in gas rates is expected.[hhmc]
“With CBM projects not yet established in this region, Tlou could pioneer CBM development in the area,” Tlou said in its quarterly statement.
“Successful results from this project could potentially facilitate the opening up of a whole new CBM basin in Botswana and be a significant boost not only for Tlou, but for the whole region, with the potential for Tlou to supply power within Botswana and also into neighbouring countries via the Read More – Source
