Tlou Energy commences drilling at Lesedi project in Botswana

Gas-to-power outfit Tlou Energy has kicked off drilling operations at its wholly-owned Lesedi coal bed methane project in order to test gas flow data within the proposed development area.

Tlou started drilling at its Botswana asset by spudding the Lesedi 3P well last week. Once drilled, Tlou said the wells will then be completed using a separate workover rig and surface facilities installed.

The AIM-listed firm expects production to commence in early 2019.

Tlou, which stated it would continue its work on an Environmental Impact Assessment for its power station and proposed transmission lines, also revealed that it was working with the Botswana Energy Regulation Authority to acquire a power generation license as well as furthering discussions in relation to off-take agreements.

As of 0950 BST, Tlou shares had dipped 1.53% to 5.71p.