Tlou To Spud Pilot CBM Well in October

Tlou Energy said September 17 that it has begun site preparation for its first pilot coalbed methane (CBM) production well at Lesedi, Botswana, has scouted out other potential well sites, and is currently awaiting final pieces of equipment prior to spudding the first well in October.

Australia and AIM-listed Tlou is planning an initial 10 MW gas-fired power project, starting with 2MW that could be expanded as more CBM becomes available. Any power produced will be sold into the power market in Botswana and/or across the Southern African Power Pool (SAPP). It could be sold ‘spot’ or through Power Purchase Agreements (PPA) with one or more customers, Tlou said.

The project would require connection to the local power grid – planned to be made at the town of Serowe, which is located 100 km from the Lesedi CBM project.

It is also bidding to develop an up-to-100MW CBM-fired power project under a tender organised by Botswana's ministry of mineral resources, green technology and energy security. But two weeks ago the ministry deferred the deadline for bids until October 10, from September 12. Tlou still hopes for a decision on the project in early 2019; it did not request the deferral. 

Tlou generated the first power from Botswanan CBM in July 2017; it spent several months last year presenting its case to develop a 100 MW, only for the ministry to cancel the original tender in February 2018 and not issue a new one until July and now defer the latter's deadline by a month.