Tlou Energy (ASX:TOU) should trade considerably higher as anticipation builds after commencing core hole drilling at its Lesedi CBM Project area in Botswana, with the first of three new holes spudded last Friday.
The well locations were selected to provide infill data on coal quality around the current pilot pods to assist with initial reserves certification, and identification of additional drilling sites for an expanded well program.
It is anticipated that the data collected, along with the data from production testing operations on both the Selemo and Lesedi pilot pods, will optimise reserves certification in the Lesedi CBM Project area.
Tlou is currently aiming to certify the first proved and probable coal seam gas reserves in Botswana from the Lesedi Project area in mid-2014.
This will provide the company Tlou with a significant ‘first mover advantage’ to commercialise Lesedi, and provide Botswana with a cheaper and cleaner energy solution.
Majors active in the Botswana Basin that hosts Tlou's Lesedi include Sasol (US$32 billion market cap), Origin Energy (US$13.7 billion), Exxaro Resources (US$4.96 billion).
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