Tlou Energy Ltd (LON:TLOU) told investors on Wednesday that its core drilling rig has arrived on site of the Lesedi coal bed methane (CBM) project in Botswana.
The core rig will be used to help obtain additional subsurface and more core-hole information on gas reserves on the project.
Tlou said it is expected to help to reduce the cost of drilling and provide more flexibility and control of proposed coring operations.
The rig has low hours and will be ideal for obtaining coal and gas data in regions of sparse geological information, Tlou said.
Tlou plans to start drilling production wells at Lesedi in the third quarter. Ahead of the work, the company has ordered long lead items and is in the process of selecting a larger drilling rig required for the gas production pods.
READ: Tlou Energy plans production well drilling at Lesedi for third-quarter of 2018
The group obtained a substantial upgrade of gas reserves after completing a core-hole drilling programme earlier this year and a seismic survey in late 2017.
A final report detailing the optimum locations for the new gas production pods is nearing completion.