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Covalent Energy owns 25% of Kalahari Gas Corporation
(KGC), aBotswana company that has an exclusive
agreement with Kalahari Energy to provide well completion and production
services for their 3,000,000 acre coalbed methane project in eastern
Botswana. Covalent assisted KGC in obtaining
an $8.5 million loan guarantee from the Overseas Private Investment
Corporation (OPIC) to finance the purchase of hydraulic fracturing
equipment, cementing units, and other well field service equipment
required to complete and bring CBM wells into production.
The main Karoo
coal-bearing sequence in Botswana appears to
consistently have two or three principal seams of good quality. The lower most seam, referred to
as the Morupule Main seam is generally 2-3 meters thick with second 3-4
meter seam (the Lotsane seam) lying about 15-20 meters above. In some areas a third seam, the
Serowe Bright seam is present, but is generally thin. |
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