Tlou Energy (ASX: TOU) has observed evidence of first gas breakthrough at the Selemo pod of its Lesedi CBM coal seam gas project in Botswana.
The pod has seen casing pressure increase steadily over the past week and has reached the critical gas desorption pressure.
This continued build-up of gas pressure is expected to lead to the Selemo pod flowing gas in the near future.
Separately, the Lesedi pilot pod continues to dewater.
A decision will be made in the coming weeks whether to further increase the lift capacity of the water pumps on Lesedi in an attempt to speed up the dewatering process.
The company continues to progress downstream gas marketing initiatives.
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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