TMK Energy Limited (ASX: TMK) ("TMK" or the "Company") is pleased to announce significant progress in the Gurvantes XXXV CSG Project (TMK 67%, Talon Energy 33%) in the South Gobi Basin of Mongolia. A sustained gas flow has been achieved at the Lucky Fox – 1, Lucky Fox – 2, and Lucky Fox – 3 wells, with gas flows sufficient to support continuous flares for each of the wells.
Since commissioning approximately three weeks ago, all three wells have been continuously on pump, and over that period, the pump speeds have gradually been increased to slowly reduce the fluid levels in the wells and therefore hydrostatic pressure in the reservoir. The wells are currently producing over 600 barrels of water per day (combined), indicating good permeability.
The current low gas rates are expected to gradually increase as the fluid levels decrease, and the reservoir continues to depressurize. Once the optimal fluid levels are achieved in each of the wells, the Company expects to report an initial gas rate, forecasted to increase over the six months of the extended production test.
Mr. Brendan Stats, TMK Energy's Chief Executive Officer, commented: "We are well ahead of where we expected to be at this stage of the extended production test, and we now have demonstrated the 'proof of concept' that the coals in the Project area can produce gas to surface via simple, unstimulated, shallow vertical wells. With the three wells now consistently flowing gas at rates sufficient to support a sustained flare, it is with confidence we can say we have reached critical desorption pressures in these wells. This is a fantastic outcome, particularly this early in the extended production test."
The Gurvantes XXXV Project covers an area of 8,400km^2 and is situated less than 20km from the Chinese-Mongolian border, close to the extensive Northern China gas transmission and distribution network. It is also proximate to several large-scale mining operations with high energy needs, making Gurvantes ideally placed to satisfy both local Mongolian and Chinese energy requirements.
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. For more details on the Company please visit www.tmkenergy.com.au
Contact details:
Jane Morgan
jm@janemorganmanagement.com.au
