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Finance Investment, Oil Mining Resources

TMK Energy (ASX: TMK) – OPERATIONS UPDATE GURVANTES XXXV

TMK Energy Limited (ASX: TMK) 3 mins read

TMK Energy Limited (ASX: TMK) (“TMK” or the “Company”) is pleased to provide an update on its ongoing Pilot Well Program and exploration activities in the Gurvantes XXXV CSG Project area. The project, located in the South Gobi Basin of Mongolia, is a collaboration between TMK (67% and Operator) and Talon Energy (33%).

Pilot Well Program (Nariin Sukhait)

The pilot well program continues to meet expectations. Notably:

  • Continuous methane gas flow to the surface, with gas being flared from each of the three pilot wells.
  • Throughout September, the Lucky Fox – 1 and Lucky Fox – 2 pilot wells have shown consistent performance, delivering good water rates and increasing gas rates.
  • Lucky Fox – 3 faced pump shutdowns due to coal solids in the water but has been successfully remedied and is now performing optimally.
  • Total water production rates from all wells currently range between 500 to 600 barrels of water per day (bwpd), a decrease from a peak of approximately 630 bwpd.
  • Gas production has been on the rise as reservoir pressure decreases, though it's still early to determine ultimate flow rates.

Exploration Activities

Following the joint exploration program announcement on 28 August 2023 with Terra Energy:

  • Three cored exploration wells have been completed. The first two, TU23_002C and TU23_003C, intersected multiple coking coal intervals with a net coal thickness between 5m to 10m. Testing for CSG potential was not conducted on these wells.
  • The third well, BHN23_002C, intersected a coal thickness of approximately 45m. Preliminary tests suggest moderate to high gas contents. This thick gassy seam appears to be in the same geological formation as the Narrin Sukhait area, located roughly 100 kilometres to the west. Due to these promising results, the exploration program will expand to include four more cored wells, expected to be completed this year.
  • The 2D seismic acquisition began in late September, with field data collection set to wrap up in October. Additional exploration is underway in the northern part of the Project area, adjacent to an existing coal mine. Depending on the results, further exploration may be pursued in 2024.

Mr Brendan Stats, TMK Energy’s Chief Executive Officer commented:

“The primary focus of the Company at present is to continue to keep the three pilot wells running as near to 100% of the time as possible with the aim of establishing gas flow rates to demonstrate commerciality. Despite the minor operational challenges associated with the pump at Lucky Fox - 3, our team is doing a great job keeping the wells running and remediating any issues quickly and efficiently.

Encouragingly, we have also intersected a thick gassy coal seam at Terra Energy’s Baruun Noyon Uul area in the east of the Project area, 100km east of Narrin Sukhait. No CSG exploration drilling has previously been undertaken in the Terra area and the results to date have given us the confidence to continue with an expanded program. What is most significant is that we have intersected thick gassy coals seams in both the west of the Gurvantes project and now the eastern portion, in what is interpreted to be the same geological formation, approximately 100km apart.”

Mr Matthew Crawford, Terra Energy’s Executive Director commented:

“Terra is pleased to be working with TMK and adding significant value to our respective businesses. To date the exploration has been done efficiently and effectively with our respective exploration teams working well together. Terra is very supportive of this project, and we look forward to expanding the exploration activities in 2024 as we have a substantial resource area of coal which is yet to be explored for CSG.”


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

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