Tlou Energy Limited (LON:TLOU) has started drilling at Lesedi in Botswana to test gas flows in the area where a new coal bed methane-fired power station is planned.
The first well, 'Lesedi 3P', is scheduled to drill down to a depth of 580m and should covert a significant portion of the currently established gas resources to the more certain reserves category and have potential to deliver gas to the proposed central processing facility and power station planned for nearby.
READ: Tlou Energy excited by Botswana’s emerging coal bed methane industry
CBM production is targeted to commence in early 2019.
The wells are extended to be on production for an extended period of time to de-water and lower the pressure in the coal seam to achieve gas flow.
Tlou had also started work on the Environmental Impact Assessment for the power station and proposed transmission lines to connect the Lesedi gas field to the power grid in Botswana.
The company has re-submitted its tender for Botswana's Ministry of Mineral Resources, Green Technology and Energy Security for the contract to build a CBM-fired station with an initial 10Mw capacity.