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Highlights
- TMK Energy (TMK) reports gas flow from its pilot wells in Mongolia's Gobi region.
- The company is focusing on optimizing production capacity to establish commercial gas rates.
- Plans include gradual testing to understand the production profile and potential.
TMK Energy (ASX:TMK), an Australian-listed gas exploration company with operations in Mongolia, has announced the successful gas flow initiation from its pilot wells in the Gobi region. The company, which endured the challenges of the global pandemic while advancing its Gurvantes XXXV project, now leads efforts in developing Mongolia’s coal seam gas industry.
According to the latest update, all six pilot wells are operational, marking a significant milestone in the company’s objective to unlock the potential of Mongolia’s vast coal seam gas resources. TMK Energy emphasized that the wells are collectively contributing to accelerate pressure buildup, which is essential for material gas flow increases. The company noted that the wells became operational over the weekend, with ongoing optimization aimed at achieving desired flow rates.
A six-to-eight-week program is now underway to fine-tune the production process. This includes carefully adjusting downhole pump speeds to remove water and other fluids, ensuring the wells are primed for sustained gas flow. Once optimal capacity is achieved, the results will provide a clear understanding of the project’s overall production profile.
TMK Energy’s CEO, Dougal Ferguson, highlighted the company’s progress and determination to become the first to achieve commercial gas production rates in Mongolia. He stated, “We believe we now have all the tools in place to deliver on our objective of being the first company to produce commercial rates of gas from the enormous coal seam gas resources that exist in Mongolia.”
The company has also pointed to its strategic location near Mongolian and Chinese cities, positioning it to capitalize on potential markets. However, Ferguson acknowledged that logistical challenges, including pipeline construction through the expansive Gobi Desert, will need to be addressed as the project advances.
The current phase of production at Gurvantes XXXV involves six closely spaced wells, effectively doubling the site’s capacity. The thick coal seams present an opportunity to demonstrate the viability of commercial gas rates, underscoring TMK Energy’s commitment to long-term development in the region.
TMK Energy shares last traded at 0.3 cents, reflecting investor interest in the company’s progress. With further updates anticipated, the Gurvantes XXXV project remains a focal point in Mongolia’s emerging energy sector.
