TMK Energy Limited (ASX: TMK) (“TMK” or the “Company”) is thrilled to announce that the Pilot Well Program at the Gurvantes XXXV CSG Project (TMK 67%, Talon Energy 33%) in the South Gobi Basin of Mongolia is progressing as planned. Yesterday, initial gas from the Lucky Fox – 1 well flowed to the surface and flared, marking the project's first successful gas flow.
The Lucky Fox - 1 well was flowed for about three hours, providing essential data while demonstrating the project's ability to draw gas from the targeted coal seams. Over the last week, since commissioning, all three wells have been fully operational, collectively producing around 500 barrels of water per day (bwpd) with the reservoir pressure decreasing as anticipated.
The pump speeds will be further increased over the following weeks, leading to a decline in fluid levels and initiating depressurization in the reservoir. This process will trigger the more substantive and continuous gas desorption from the coals, a process that may extend over several weeks or months. As we collect more data, TMK Energy is committed to keeping the market updated on these key metrics.
While the flaring of the initial gas from the Lucky Fox – 1 well is a positive indicator, it represents an unsustained flow and does not necessarily reflect the future sustained gas flow rates that may be achieved from this or other wells in the project area.
TMK Energy's CEO, Mr Brendan Stats, commented on this milestone: “The early signs we are seeing from the performance of the three pilot wells align with our reservoir modelling work and augur well for the extended production test. The favourable water rates, along with decreasing fluid levels in each of the wells, is very encouraging. We've confirmed that there is gas in the system that can be and is flowing to the surface. Our next goal is to show that gas can be produced at a sustained economic rate as we continue with the extended production test.”
Mr Stats concluded: "The promising results to date from this maiden Pilot Well Program boost the future outlook of the Project, the Company, and its shareholders.”
About us:
TMK Energy Limited is listed on the Australian Stock Exchange. TMK is led by an Australian and Mongolian team bringing together the expertise and experience to develop the Gurvantes XXXV CSG Project.
Contact details:
Jane Morgan
jm@janemorganmanagement.com.au