TMK cranks up three more coal seam gas wells in Mongolia

TMK Energy has doubled the gas production capacity at its mammoth flagship Gurvantes project in Mongolia with the commissioning of three new pilot wells at the project over the weekend.

The considerable milestone is the climax of a two-month long extensive drilling and commissioning program at the project’s Lucky Fox area.

TMK now has six pilot wells at Lucky Fox that it says will accelerate its quest for commercial production within the enormous Gurvantes coal seam gas project (CSG).

TMK has commissioned three new pilot wells at its Lucky Fox area in Mongolia as it looks to become the country’s first coal seam gas producer.

The achievement would earn TMK the title of first coal seam gas producer in Mongolia’s untapped industry. With a contingent (2C) resource of 1.2 trillion cubic feet (Tcf), the company considers Gurvantes XXXV to be Mongolia’s biggest gas deposit.

TMK owns 100 per cent of the Gurvantes XXXV project in addition to a 20 per cent stake in the Napolean project in the Barrow-Dampier sub-basin off Carnarvon in Western Australia – and says it is moving fast to solidify its in-country position in the coal seam gas industry.

TMK says downhole production tubing, rods, pumps and temperature sensing fibre optic cable have all now been successfully installed in the three new pilot wells at Lucky Fox, which are named LF-04, LF-05 and LF-06.

‘With six closely spaced pilot production wells now online, we have doubled the production capacity’

TMK Energy CEO Dougal Ferguson

All six of TMK’s commissioned wells are expected to be gradually cranked up over the next six-to-eight weeks. The company is looking to the extra pumping capacity to quickly achieve critical desorption pressures for the project and expedite an uplift in gas production rates from all six of its pilot wells.

Assuming everything goes to plan the pumps will be at full pumping capacity by the end of January when TMK will be able to start measuring the pressure drop-off in production flow rates.

Pressure monitoring will be critical to achieving the correct desorption rate to optimise gas production. By not drawing down on the gas too quickly, the company can reduce the risk of the well running dry too quickly, thereby extending its life.

TMK Energy CEO Dougal Ferguson said: “With six closely spaced pilot production wells now online, we have doubled the production capacity at this location within the field and given the project every chance of demonstrating that commercial gas rates can be achieved from these very thick coal seams. We believe we now have all the tools in place to deliver on our objective of being the first company to produce commercial rates of gas from the enormous coal seam gas resources that exist in Mongolia, and we look forward to continuing to report positive outcomes for shareholders in the coming months.”

TMK believes its 8400-square-kilometre Gurvantes XXXV project in the South Gobi Basin, a region known for its mammoth coal deposits, can soon become a regionally significant, reliable source of natural gas for both Mongolia’s domestic market and the broader Asian market.

The proximity of the project to northern China’s gas pipelines positions TMK as a key player in the regional energy landscape. It also possesses the potential to contribute significantly to Mongolia’s transition away from coal, supporting cleaner energy solutions

TMK says further exploration upside potential also exists immediately outside the two-square-kilometre Lucky Fox pilot well area with an estimated 5.3Tcf prospective resource sitting across its 8400-square-kilometre lease.

The timing and rapid progress of TMK’s imminent gas production is a win for company management, who, only 12 months ago picked up the remaining 33 per cent balance of the project from ASX-listed Talon Energy.

TMK’s substantial investment in committing to its coal seam gas resources in Mongolia could all pay off in as little as two months, marking a significant milestone in the company’s history as it goes from oil and gas explorer to gas producer.

Ultimately TMK’s goal is to produce cashflow from its early wells to fund more wells in what is so far untapped elephant country when it comes to coal seam gas.

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