Tlou Energy records significant increase in gas reserves

02nd March 2018
Tony Gilby, Tlou MD Source:The Midweek Sun

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By Keikantse Lesemela - Reporter


Coal bed Methane mining company, Tlou Energy recorded significant increase in gas reserves from 3.9 billion cubic feet to 40.8 billion cubic feet. The only gas mining company in Botswana is focused on delivering power in Botswana and Southern Africa through the development of coal bed methane (CBM). The company has the most advanced CBM project in Botswana. Its current project includes the Lesedi Project and Mamba project. The Lesedi project, which is located at Karoo Kalahari Basin, Botswana already benefits from significant, independently certified Contingent Gas Resources of 3.2 trillion cubic feet (3C) and independently certified Gas Reserves.  Tlou has been producing gas at Selemo for nearly two years and says using gas at its project will reduce the company spend on diesel by about 50 000 litres per annum.  

Tlou Managing Director, Tony Gilby said this very significant upgrade in gas reserves reinforces the commerciality of the Lesedi and Mamba Projects. “The recent seismic survey and core hole drilling campaign, along with the Selemo pilot wells producing sustained gas flows for a substantial period of time, confirms that there is huge gas production potential for Tlou’s area. Ongoing work to assess this potential continues in tandem with planning for connection to the regional power grid,” said Gilby. In a statement published last week, Gilby said they believe that the Lesedi and Mamba projects represent a very valuable resource for the company. “This reserves upgrade provides continued confidence for the Company to invest in additional appraisal activities aimed at further increasing certified gas reserves.

Adding reserves, and planning for grid connection, reinforces the Company’s objective to become the first company to sell power generated by CBM gas in Botswana.” Tlou has a 100 percent interest in and operates 10 prospective CBM licences in Botswana, which are considered to be prospective for coalbed methane. However, Gilby stated that the Lesedi CBM Project currently has no gas transportation infrastructure in place because the powerline infrastructure, which is owned by the Botswana Government, exists to the east of the Lesedi Project. “Depending on the scale of any Lesedi development, this infrastructure may not be sufficient for Lesedi and additional infrastructure may be required and would be considered under any Lesedi development plan,” he said.




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