Tlou's Botswana Reserves Certified, More Wells Needed
Australia and AIM-listed Botswanian coalbed methane (CBM) explorer Tlou Energy said October 12 has received an initial independent reserve certification of its Lesedi CBM project in Botswana, but cautioned that more drilling is required before it will decide on its development.
“As the first in Botswana to attain independently certified CBM reserves we are in a very strong position to progress the project further,” said Tlou’s executive director Gabaake Gabaake.
Australia’s SRK Consulting assessed Lesedi CBM 2P reserves at 2.7bn ft³, within a range of 52.9bn ft³ (3P) and 0.1bn ft³ (1P).
Unrisked gross ‘contingent’ 2C gas resources for all coalbeds are assessed at 236bn ft³, within a range of 3243bn ft³ (3C) and 4.8bn ft³ (1C).
Both sets of assessments were for the lower Morupule seam only, as at September 26 2016. Tlou’s equity interest in both cases is 100%
Gabaake said that the reserves assessment by SRK was based on production data from the three pilot production wells in the Selemo area of the southern part of Tlou’s PL002/2004 block. This was extrapolated over a potential field development to support a 50-MW power plant project as was proposed by the Botswanian government in July. Tlou’s environmental impact statement for the CBM project was approved last month.
Tlou’s statement noted that the Lesedi CBM project remains in the appraisal phase, and that it is likely that further wells will be required to continue to obtain data on coal parameters, in particular in the northern and more eastern parts of the block, before a development decision can be made.
“It is likely that further conversion of contingent resources to 2P and 3P reserves, and migration of 3P reserves to 2P reserves will be required before a development decision will be finalised,” its statement said.
Tlou earlier had cited “independently certified contingent gas resources of some 3.3 trillion ft³” for its PL002 (Lesedi) block; the new SRK assessment broadly confirms that assessment for all coalbeds in Tlou’s Lesedi block at 3.24 trillion ft³..
Mark Smedley