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Tlou Energy said initial gas flows had been achieved at the Lesedi coal bed methane project in Botswana.
The wells Lesedi 3 and 4 achieved initial sustained gas flows of about 20 thousand standard cubic feet per day from each pod.
Gas flow rates were anticipated to increase steadily as the coals became gas saturated, the company said.
At 8:23am: (LON:TLOU) Tlou Energy Limited share price was -0.1p at 4.55p