Project Development Update

Source Company Press Release
Company Tlou Energy Limited
Tags Corporate: Overview/Strategy, Country: Canada
Date June 19, 2019

Tlou Energy Limited is pleased to announce that the Lesedi 3 production pod has successfully reached Critical Desorption Pressure ("CDP").  CDP is the pressure that gas begins to come out of the coal after a careful dewatering process.  

Highlights

·    Lesedi 3 has reached CDP

·    Lesedi 4 continues to be carefully dewatered in a consistent and controlled manner

Tlou's Managing Director, Mr Tony Gilby commented, "Since the commencement of production testing, the dewatering process at Lesedi 3 and Lesedi 4 has steadily progressed with CDP recently being reached at Lesedi 3.  The primary objective remains to demonstrate a commercial gas flow rate."

Production Update

Lesedi 3, the first dual lateral production pod completed earlier this year, has reached Critical (gas) Desorption Pressure (CDP) in the horizontal well bores.  Reaching CDP is a positive milestone in the operation and means that as a result of a careful and successful dewatering process to date, gas begins to come out of the coal.

The next stage of the operation at Lesedi 3 involves continued water pumping which should see gas pressure steadily increase inside the casing to an optimal point so that flow testing and flaring of the gas can begin.

Lesedi 4 (the second pod drilled and completed) continues to be carefully dewatered.  Water is continuing to be drawn down in a controlled manner as planned.  

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