Botswana-focused Tlou Energy has commenced long term production testing on the Selemo 1P well in its coal bed methane (CBM) project in Botswana. The testing will gather reservoir engineering data to ascertain how best to commercialise gas flows from the well.
The outcome of the testing will allow the company book an initial reserve for the Lesedi CBM project. Tlou also plans to commence testing of the Mopani 2P well while gas pressure continues to build in the Lesedi 2P well where the company also plans to commence flow testing once pressure begin to plateau. However, in the interim, all resources are likely to be focused on the Selemo pilot area which has the potential to become the first gas producing field.
Commercialization plan for the gas output include gas supply for local power generation with excess supply injection to the national grid. Other avenues being explored include industrial LPG marketing within Botswana and neighbouring countries, a large scale gas fired plant which will include the proposed 300MW greenfield plant and power export to South African market. The completion of the Lesedi CBM project is vital to the energy independence of Botswana whose Morupule B coal fired plant is facing technical challenges. The country has to depend on electricity importation from South Africa’s Eskom that is equally facing local challenges of its own.