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Brought to you by Bulls N’ Bears
Doug Bright
TMK Energy has successfully navigated another milestone at its wholly owned Gurvantes XXXV coal seam gas (CSG) pilot well project in Mongolia.
The company’s latest pressure build-up tests at its Lucky Fox one and four wells, which were shut in for 14 and 8 days, respectively, have confirmed the reservoir pressure has continued to improve since earlier readings in November.
The latest numbers show that the upper coal seam water pressure is steadily declining towards the all-important critical desorption level required for gas to flow freely. Once enough water is pumped out, methane separates from the coal matrix, flipping the wells from water-dominated to gas-dominated outflow.
The transition represents a make-or-break stage for meaningful CSG production.
‘A formal partnering process commencing after Chinese New Year provides a clear pathway forward for the Company.’
TMK Energy Chief Executive Officer Mr Dougal Ferguson
Notably, the observed pressure trends have lined up neatly with TMK’s updated reservoir simulation model, confirming the upper coal seam reservoir pilot project remains firmly on target to hit the targeted desorption pressure.
TMK Energy Chief Executive Officer Mr Dougal Ferguson said: “This is yet another key data point which demonstrates that the coals within our project area are being depressurised and that measurable progress is being made, which will ultimately deliver much higher gas rates once the desorption pressure is reached. A large body of technical work is nearing completion that clearly demonstrates how we see the development plan unfolding.”
Adding further support to its progress, the company says this trend is almost a mirror image of other nearby wells, suggesting not only a quicker arrival at desorption but also that potential gas volumes are already sufficient to support a 2-5 megawatt power generation project this year.
The new data indicate TMK has made steady progress in de-risking the play as the company continues to drive its pilot program forward.
With results marking a solid step for TMK on its critical desorption journey and pressure trends closely tracking expectations from the company’s model, TMK appears poised to keep its momentum alive in Mongolia’s emerging CSG scene.
Is your ASX-listed company doing something interesting? Contact: mattbirney@bullsnbears.com.au
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