Tlou Energy Limited, the firm focused on delivering power in Botswana and southern Africa through the development of coal bed methane (CBM), has announced a significant upgrade of Reserves for the Lesedi CBM Project and initial Reserves for the Mamba Project in Botswana.
This latest Reserves assessment has been independently certified by Dr Bruce McConachie of SRK Consulting (Australasia) Pty Ltd ("SRK").
44% increase in 2P (Proved and Probable) Gas Reserves to 3.9 billion cubic feet (BCF)
390% increase in 3P (Proved, Probable and Possible) Gas Reserves to 261 BCF
The increases comprise:
additional certified Reserves in the Lesedi Project area (PL 002) based on a southern extension of the Selemo pilot area; and
initial certified Reserves in the Mamba Project area (PL's 238 and 240) based on a western extension of the Selemo pilot area.
Tlou Managing Director Tony Gilby said, "This significant upgrade in Reserves reinforces the commerciality of the Lesedi Gas Project. 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 from the Government of Botswana.
We are very pleased to have received the first gas Reserves in the Mamba Project area, which demonstrates the upside available within our portfolio. Together, we believe that the Lesedi and Mamba projects will continue to develop into a valuable resource for Tlou shareholders as we work towards increasing the certified gas Reserves in both areas. Furthermore, the Company is on track to become the first gas to power producer in Botswana."
In accordance with the Society of Petroleum Engineers ("SPE") 2007 Petroleum Resource Management System ("PRMS") Guidelines, as well as the 2011 Guidelines for Application of the PRMS approved by the SPE, SRK has attributed Gas Reserves to Tlou's 100% interest in the Lesedi and Mamba Project permits using the deterministic method of petroleum Reserves estimation as at 1 January 2017.
The table below, in billion cubic feet (BCF) and petajoules (PJ), summarises the changes to the Company's Reserves position for Lesedi and Mamba as at 1 January 2017.
SRK has consented to the information in this announcement being released.
Additional information in relation to the Gas Reserve estimates for PL002/2004 (Lesedi CBM Project) and PL's 238/2014 and 240/2014 (Mamba CBM Project), which is the subject of this announcement, and required to be disclosed pursuant to Chapter 5 of the ASX Listing Rules, is set out in Appendix 1 of this announcement.
The Lesedi Reserves Statement received from SRK represents an updated independent certification that is based on SRK's review of regional data surrounding the Selemo pilot area to the south and, consistent with the prior Reserves assessment (announced to the market on 12 October 2016), relates only to the Lower Morupule coal seam.
The Mamba Reserves Statement received from SRK represents an initial independent certification that is based on SRK's review of regional data to the west of the Selemo pilot area and relates only to the Lower Morupule coal seam.
In both cases, the Reserves estimates in these southern and western extension areas were based on the high level of stratigraphic continuity of the Lower Morupule coal seam and data about the reservoir and gas quality from prior corehole data and seismic activity.