Tlou's Botswana Operation Starts Off Well
Africa-focused Tlou Energy January 23 said its drilling operations at the Lesedi coalbed methane (CBM) project in Botswana had got off to an "excellent" start, and it has submitted an environmental impact assessment for downstream project development.
It has also re-tendered for the development of a CBM-fuelled pilot power plant in Botswana, so it can turn its gas into marketable electricity.
The Lesedi project in Botswana covers about 3,800 km2 and consists of four coal and CBM prospecting licences (PL) and a mining licence. The latter area is the focal point for Tlou's operations and includes the Lesedi pilot wells and the Selemo pilot wells where Tlou had been flaring gas before the start of the drilling programme.
Tlou also has the Mamba project, adjacent to Lesedi, which consists of five coal and CBM PLs, covering about 4,500 km2. The Mamba area is considered to be highly prospective and being on-trend with the encouraging results observed to date. If Tlou decides on a gas field development, it said, the Mamba area will provide it with "considerable flexibility and optionality."
The Lesedi wells, or 'pods', comprise a single vertical production well intersected by two lateral wells, drilled through the gassy coal seam with gas extracted from this coal produced through the vertical production well where it can be gathered and used for power generation. Up to three such pods are planned and dewatering and production testing activities will begin immediately following the completion of the production pods, it said.
The project will require connection to the local power grid, which is planned to be made at the town of Serowe, about 100 km distant. A draft transmission line route has been determined with negotiations ongoing with the regional and local land boards.
In October it proposed to the government to build up to 100 MW of power plants, in 10-MW stages, running on Tlou's certified gas reserves of 41bn ft3 and contingent gas resources of about 3 trillion ft3. It is now awaiting a reply from the government. If the proposal and the initial project are successful, Tlou will consider expanding further, it said.
If Tlou's proposal is accepted, it will provide an ideal pathway towards a power purchase agreement (PPA). Once an initial development is completed, Tlou Energy's gas field will be connected to the regional grid, thereby opening the possibility for power sales across through the Southern African Power Pool.
As a back-up, Tlou has entered into discussions with other potential off-takers of gas and power as well as potential financiers of the downstream development, the latter being subject to securing an appropriate PPA, it said.
It provided no update on its discussions with groups in Europe, China and the US with interests in developing its CBM gas reserves.