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Tlou Energy achieve peak gas flow at Selemo Pilot

Publishing Date : 12 January, 2015


Tlou Energy  has achieved peak flow rates of 395,000 cubic feet of gas per day during production testing of its Selemo Pilot.

Notably, the results to date indicate that the economic threshold for a potential development has been met when all key factors are taken into consideration.

In November 2014, the company started to flow gas from Selemo with the rate building as the well bore environment was gradually brought into equilibrium with atmospheric conditions.

The Selemo Pilot is the first in Botswana to flow coal seam gas at these rates.

It is expected that as additional wells are placed nearby to the Selemo Pilot, this would assist in maintaining (or even enhancing) the longer term gas flow rate given a significantly larger area of the coal seam would be maintained below the gas desorption pressure.

The company said it was encouraged by the build-up of pressure in the lateral well head since the system was shut-in post the short term production test.

 A decision was made in early December 2014 to determine the gas flow potential of the well by conducting short term tests as part of the longer term testing process.

The Selemo Pilot was then shut-in to allow pressure build-up data to be accumulated and assessed prior to the recommencement of longer term production testing in early It added that although this was a short term flow test, such a test can still provide a relatively reliable estimate of flow rate capability once wells are in production.

The company said testing operations will continue at the four pilot locations, currently in various stages of gas and water production, to advance ongoing gas sales agreement negotiations and reserve certification.

These activities will serve to underpin Tlou Energy’s planned field development objectives at the Lesedi CBM Project.

Anthony (Tony) Gilby, Managing Director of Tlou Energy stated that he was highly encouraged by the results achieved at the Selemo Pilot to date.

“With high expected gas prices driven by diesel replacement and low capital / operating costs relative to the Australian CBM industry, the results suggest that a commercial development is achievable,” he said.



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