TMK Energy’s seventh well powers up gas production in Mongolia

TMK Energy is producing gas from its newly commissioned seventh Lucky Fox pilot production well at the company’s Gurvantes XXXV coal seam gas project in Mongolia’s South Gobi Desert.

The LF-07 well was brought online on August 24, marking a key step towards TMK achieving commercial gas flows.

LF-07 was drilled to a depth of 420 metres to intersect 54m of net coal in early August, then swiftly cased and equipped with downhole pumps.

The well is now producing low levels of gas. TMK deliberately started operating at minimum pump speeds to protect the reservoir and gather critical data.

The company is running all seven wells at reduced speeds to conduct interference testing and will feed these results into an updated reservoir model.

The company’s chief executive officer Dougal Ferguson said the cautious approach would ensure minimal reservoir damage while optimising future production techniques.

We are producing the new well (LF-07) with kid gloves to begin with and commencing production at minimum pump speeds to minimise damage to the reservoir. We have also reduced the pump speeds on other wells to gather additional data for input into the reservoir model with the objective of ultimately producing more water in a shorter period to accelerate the desorption process.

All seven Gurvantes XXXV wells are steadily reducing reservoir pressure toward the critical desorption threshold, a milestone expected to significantly boost gas output. The company anticipates that as pump speeds increase over the coming weeks, gas rates will rise, amping-up overall progress.

TMK’s Gurvantes XXXV project spans 8400 square kilometres and contains Mongolia’s largest 2C contingent gas resource of 1.2 trillion cubic feet, positioning it as a cornerstone for the nation’s shift to cleaner energy. The project is just 50 kilometres from China’s Shivee Khuren border, streamlining logistics and enhancing cost-effectiveness.

LF-07’s rapid commissioning, just weeks after drilling, highlights TMK’s operational efficiency and strategic planning.

The company’s foresight in securing equipment and leveraging partnerships, such as with Canadian driller Major Drilling, has streamlined its progress.

With no major capital expenditure planned in the near term, TMK is now focused on refining its reservoir model to forecast gas production rates and timelines accurately.

TMK’s swift progress at Gurvantes XXXV signals a bright future, cementing its role as a key player in Mongolia’s energy transition and a potential supplier to regional markets, including northern China’s vast energy network.

Is your ASX-listed company doing something interesting? Contact: matt.birney@wanews.com.au