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Lesedi Gas Flow Testing Update

Source: www.gulfoilandgas.com 7/10/2019, Location: Africa

Tlou Energy Limited is pleased to announce that the Lesedi 4 production pod has successfully reached Critical Desorption Pressure ("CDP").

Highlights
- The Lesedi 4 pod has reached CDP;
- Short term gas flow test conducted at the Lesedi 3 pod yielding positive results;
- Dewatering of the Lesedi 3 & 4 pods is continuing according to plan.

Tlou's Managing Director, Mr Tony Gilby commented, "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."

Production Update
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.

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