- TMK Energy (TMK) secures a drilling rig for the first pilot well program at its Gurvantes XXXV coal seam gas project in Mongolia
- The Mongolian operating subsidiary of Canada-based drilling company Major Drilling Group has been engaged to begin drilling three production wells in April
- The preparation of the drilling locations is underway, and the program is anticipated to take eight weeks to complete
- TMK CEO Brendan Stats says the company is pleased to be at the stage of commencing what it believes will be a “transformational” period for TMK
- TMK shares are up 3.1 per cent to 1.6 cents and shares in farm-in partner Talon Energy (TPD) are up 3.1 per cent trading at 16.5 cents at 1:54 pm AEDT
TMK Energy (TMK) has secured a drilling rig for the first pilot well program at its Gurvantes XXXV coal seam gas project in Mongolia.
TMK has engaged the Mongolian operating subsidiary of Canada-based drilling company Major Drilling Group to begin drilling in April.
Three production wells are planned to be drilled in the program, in proximity to the Snow Leopard-02 exploration well.
TMK said results from Snow Leopard had been integrated into modelling work, which had shown “positive indications” on early gas breakthrough and production rates.
The preparation of the drilling locations is underway, including site works and the purchase of long lead items. Once drills are spinning, the company anticipates it will take eight weeks to complete the three production wells and install pumps.
TMK CEO Brendan Stats said the company was pleased to be at the stage of commencing what it believed would be a “transformational” period for TMK.
“In 2022, we certified a large gas resource (1.2 TCF 2C contingent resource), and the aim of the 2023 pilot well program is to demonstrate that this resource can produce gas to surface at commercial rates,” Mr Stats said.
“The company is well-placed to take advantage of the significant requirement for reliable long-term energy supply in the region, particularly with China now opening up its borders.”
The program is anticipated to cost around US$3.5 million (A$5 million), and Talon Energy (TPD) will pay the first US$3.1 million as part of a stage two farm-in agreement with TMK.
The balance will be split between the two companies, with TMK’s share of the cost estimated to be around USD $235,000.
The pilot wells will be operated for six months upon commissioning in order to understand both the water and gas production profiles.
In the meantime, TMK said work was underway to determine if there was an economical and environmentally sensible way to utilise the gas produced to surface during the early stages of the production test rather than flaring the gas. This could include generating power for the Gurvantes project or generating power for local coal mining operations.
TMK shares were up 3.1 per cent to 1.6 cents and shares in Talon Energy were up 3.1 per cent trading at 16.5 cents at 1:54 pm AEDT