TLOU Energy posts update on Lesedi gas flow

Southern Africa-based advanced gas producer and coal bed methane operator TLOU Energy Ltd (ASX: TOU) provided an update on its Lesedi 3 and Lesedi 4 pods.

The Company said that it was pleased to announce that the Lesedi 4 pod has reached Critical Desorption Pressure. It also announced that a short term gas flow test yielded ‘positive results’ fro the Company’s Lesedi 3 pod.

TLOU Energy added that the dewatering of the Lesedi 3 and 4 pods is continuing according to plan.

TLOU Energy statement

The Company’s statement disclosed the following,

“The Lesedi 4 pod has continued to dewater and CDP has now been reached successfully. CDP is the pressure that gas begins to come out of the coal after a careful dewatering process. Gas is now starting to come out of the coal and is steadily building pressure inside the closed casing.”

“A short-term gas flow test at Lesedi 3 took place after a significant gas pressure build-up inside the well casing. The result of this test is considered by the Company to represent a positive indication of the pod’s potential. Post the short-term test, dewatering has continued with the plan to hold the water level just above the coal and continue to draw down pressure in the well allowing gas to flow in a controlled manner, ideally leading to a long-term gas flow from the Lesedi 3 pod.”

The Company’s Managing Director, Tony Gilby, attached the following comments to the update,

“We are very pleased to have now reached CDP at both the Lesedi 3 and Lesedi 4 production pods. The short-term gas flow test at Lesedi 3 has also been positive, and with the primary objective of demonstrating a commercial gas flow rate, we look forward to further testing at both Lesedi 3 and 4. Further updates will be provided in due course.”

Investor notes

The Company’s shares are currently not trading.

Elsewhere in the oil and gas sector, there have been updates from; Eland Oil and Gas PLC (LON: ELA), IGas Energy PLC (LON: IGAS), Anglo African Oil and Gas (LON: AAOG), Nostra Terra Oil and Gas plc (LON: NTOG), Prospex Oil and Gas Plc (LON: PXOG), TomCo Energy Plc (LON: TOM), Rose Petroleum PLC (LON: ROSE) and Petrofac Limited (LON: PFC).

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Senior Journalist at the UK Investor Magazine. Also a contributing writer at the Investment Observer, UK Property Journal and UK Startup Magazine. Postgraduate of King's College London with a specialisation in Business Ethics. Interested in Development Economics and David Hume.