TMK Energy has successfully doubled the gas production capacity at its flagship Gurvantes coal seam gas (CSG) project in Mongolia, following the commissioning of three new pilot wells over the weekend.
This significant milestone marks the conclusion of an extensive two-month drilling and commissioning program in the Lucky Fox area of the Gurvantes project. With the addition of the new wells, TMK now operates six pilot wells at Lucky Fox, positioning the company to accelerate its move toward commercial production in one of Mongolia’s largest gas deposits.
The development is a crucial step for TMK, which is poised to become the first coal seam gas producer in Mongolia, a nation with untapped CSG resources. The Gurvantes XXXV project is estimated to hold 1.2 trillion cubic feet (Tcf) of contingent (2C) gas resources, making it the country’s largest known gas deposit.
TMK holds full ownership of the Gurvantes XXXV project and also owns a 20% stake in the Napolean project located in the Barrow-Dampier sub-basin off Western Australia. The company has emphasized its commitment to establishing a dominant position in Mongolia’s emerging coal seam gas sector.
The new pilot wells, LF-04, LF-05, and LF-06, are equipped with downhole production tubing, rods, pumps, and temperature-sensing fibre optic cables. These wells are expected to increase production capacity significantly, with all six wells set to reach full output by the end of January. This will allow TMK to monitor pressure changes and optimize gas production rates from the wells.
“We’ve doubled the production capacity with six closely spaced pilot production wells now online,” said Dougal Ferguson, CEO of TMK Energy. “This gives the project the best chance of demonstrating commercial gas rates from the thick coal seams.”
Pressure monitoring will be a key factor in managing gas production effectively. By avoiding a rapid decline in pressure, TMK aims to extend the lifespan of its wells and optimize output. The company is confident that its robust infrastructure and technology will allow it to meet its objective of becoming the first producer of commercial coal seam gas in Mongolia.
The Gurvantes XXXV project, located in the South Gobi Basin, offers a unique opportunity for TMK, given its proximity to natural gas pipelines in northern China. The company sees the project as a potential game-changer for both Mongolia’s domestic energy market and the broader Asian market, especially as Mongolia shifts away from coal towards cleaner energy solutions.
Additionally, TMK has identified significant exploration potential beyond the Lucky Fox pilot area, with an estimated 5.3 Tcf of prospective resources across its 8,400-square-kilometre lease.
TMK’s rapid progress in gas production is a testament to the company’s strategic vision, which included acquiring the remaining 33% of the Gurvantes project from Talon Energy just a year ago. With its substantial investments, TMK is on track to transition from an oil and gas explorer to a gas producer, with the goal of generating cash flow to fund further development of the project’s extensive coal seam gas reserves.
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