TMK Energy Limited (ASX: TMK) (“TMK” or the “Company”) is thrilled to announce that the extended production testing phase at the Gurvantes XXXV CSG Project in the South Gobi Basin of Mongolia is officially underway. This announcement follows the successful drilling, completion, and commissioning of the three-well maiden Pilot Well Program as part of the extended production phase.
Since the last update on 13th July 2023, the Company has commenced pumping operations at low speeds on all three wells, which are currently producing water at rates that meet expectations. This water is being transported to a nearby storage pond for recycling by adjacent mining operations.
In the ensuing weeks, the Company plans to progressively increase pump speeds and begin the reservoir depressurisation process. While the initial gas breakthrough isn't expected immediately, previous independent reservoir modelling suggests that gas breakthrough may occur any time following this initial depressurisation.
Once gas breakthrough commences, the Company will flare the gas at surface. The resulting gas and water production data will provide vital insights for future commercial viability and the initiation of pre-feasibility studies. On reaching sustained production levels, a decision will be made regarding the utilization of the Lucky Fox production wells for electricity generation for both internal use and potential sales revenue.
TMK anticipates the wells will initially yield high levels of water and low levels of methane gas. Over the production test period, gas rates are expected to increase while water rates should decrease.
TMK Energy's CEO, Mr Brendan Stats, commented on the progress, “Since acquiring the Gurvantes XXXV Coal Seam Gas Project less than 18 months ago, TMK has discovered a significant gas resource, drilled seven CSG exploration wells, and completed three pilot production wells. We have also built and commissioned production facilities and now commenced production testing from the pilot well program.”
Mr Stats added, “The rapid, safe and successful progress of the Project to this significant milestone is a testament to our dedicated team and the world-class geology of the area. We eagerly anticipate the results of our efforts in the weeks and months to come. The first gas production from the extended production test will transition the Project from the exploration phase into the appraisal and development phase for the Nariin Sukhait area. Our 2023 exploration program aims to further demonstrate the true scale of the Project and we look forward to commencing this aspect of the work program over the coming months.”
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About TMK:
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.
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