Tlou bumps up CBM reserves in Botswana

21 February 2017, Week 07, Issue 677

Botswana-focused coalbed methane (CBM) developer Tlou Energy has announced a significant upgrade of reserves for its Lesedi gas project and initial reserves. As such, its hopes for becoming the first gas-to-power producer in Botswana are improving. 

In a February 15 statement, the UK- and Australia-listed Tlou reported a 44% increase in proved and probable gas reserves to 3.9 bcf (110.4 mcm), and a 390% increase in proved, probable and possible gas reserves to 261 bcf (7.39 bcm).

It said the increases consisted of additional certified reserves in the Lesedi project area, under Prospecting Licence (PL) 002, based on a southern extension of the Selemo pilot area, and initial certified reserves in the Mamba project area, under PLs 238 and 240, based on a western extension of the Selemo pilot area. Tlou holds a 100% interest in both the Lesedi and Mamba project permits.

“This significant upgrade in reserves reinforces the commerciality of the Lesedi gas project,” said Tlou’s managing director, Tony Gilby. “The success of the Selemo pilot in producing sustained gas flows for a substantial period suggests that there is significant gas production potential for the area. Our ongoing work to assess this continues in tandem with our planning for the staged delivery of a commercial CBM power facility, for which we have received a detailed request for proposal [RFP] from the government of Botswana.” 

The Botswana government is seeking the delivery of 100 MW of CBM power to be incorporated into its future generation supply plans.

In October 2016, Tlou became the first explorer in Botswana to book independently certified gas reserves. Tlou’s recent reserves assessment was independently certified by SRK Consulting (Australasia). In both project areas, the reserves assessment relates to the Lower Morupule seam only. 

Gilby said the first numbers from the Mamba project area demonstrate “the upside available within our portfolio” as the company continues to work towards increasing the certified gas reserves in both areas. 

Announcing its full year results on February 20, the company said: “2017 may prove to be a transformational year for the company as we look to agree terms with a project partner for the delivery of up to 100MW of power, finalise a power purchase agreement with the Botswana government and conclude plans for implementation of the first phase of the gas-to-power project. In addition, the company will continue planning further exploration and evaluation across the licence areas held. The coming period is shaping up to be a very exciting time for the company and we look forward to delivering on our plans.”