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Craig Nolan
TMK Energy has continued its impressive run, notching up yet another new gas production record at the company’s Pilot Well project, which forms part of its Gurvantes XXXV coal seam gas project in southern Mongolia.
The company set a new daily production record of 674 cubic gas metres, or more than 23,800 standard cubic feet per day(scfd), on 21 January.
A new monthly gas production record was also achieved at Pilot Well, hitting 18,370 cubic metres of gas, putting December’s 16,306 cubic metre outcome firmly in the rear-view mirror.
This saw average daily gas production for the month climb to 593 cubic metres, marking a solid 13 per cent increase on December’s previous record average of 526 cubic metres. Additionally, management says water production remained steady at an average of 497 barrels per day (bpd).
‘Six months in a row of increasing gas production has further bolstered our confidence in the project.’
TMK Energy’s chief executive officer Dougal Ferguson
The run of new records highlights the significant improvement in production at the project. Its LF-07 well – the most recent well drilled and one of the highest up-dip wells in the structure – smashed out more than 10,000scfd, becoming the first well to reach the coveted number. LF-07 kept the good times rolling by doubling up and achieving 10,000 scfd for a second time in January.
The company, in cricket parlance, has knocked its gas production out of the park for six, with the new figures bringing up six consecutive months of increasing production at the project site.
TMK Energy’s chief executive officer Dougal Ferguson said: “Six months in a row of increasing gas production has further bolstered our confidence in the project. Additional pressure build-up tests will be undertaken in February to provide additional data on the reduction in the reservoir pressure, another key lead indicator for the future success of the project.”
Ferguson said a small number of third-party power interruptions towards the end of the month temporarily reduced gas rates, reinforcing the benefits that will come to the company from generating its own power from the current gas production.
Management is planning additional pressure testing this month to provide additional data on the reservoir pressure reduction rate – known as desorption – which is a key indicator to determine the project’s future success.
The company believes it is moving the desorption pressure closer to the required level needed to increase gas volumes significantly. Reservoir modelling last year outlined a clear path to achieving that perfect pressure.
Notably, the continued water production of nearly 500 barrels per day is assisting in depressurising the reservoir towards desorption. Dewatering helps to lower the pressure, causing the gas to desorb from the coal seams. Recent analysis confirmed the majority of the water is being produced from the coal seams, not from adjacent aquifers or non-coal bearing zones, providing a strong indication of coal seam permeability.
TMK has been focused on reducing the reservoir pressure below the critical desorption pressure for a sustained period, which is one reason why the company drilled additional production wells last year.
Additional wells help provide the extra pumping capacity needed to quickly reach the critical pressures for the project to deliver an immediate uplift in gas production. Gas rates are expected to increase substantially when the objective is achieved.
The LF-07 well was drilled last year using a larger, more powerful TXD200 rig for the first time in the country. Canadian firm Major Drilling, which drilled all six previous wells at the project, used the larger rig, with a more advanced mud system to drive drilling efficiencies.
Management expects Pilot Well to shortly begin producing gas at a commercial scale from the site, spanning 60 square kilometres in the Nariin Sukhait area of Mongolia’s vast countryside.
The company’s contingent resource (2C) of 1214 billion cubic feet (BCF) of natural gas is Mongolia’s biggest. The project currently contains a 5300BCF prospective resource across its total 8400-square-kilometre ground.
The project area is currently experiencing light snow and sub-zero temperatures. However, the company has the benefit of a crew comprising mainly of Mongolian nationals – a hardy bunch experienced with working in difficult wintry conditions.
Mongolia is keen to transition into cleaner energy production, moving away from older-style forms of energy such as coal and instead accessing sources such as coal seam gas. Coal seam gas is considered a cleaner fuel because it produces about half the carbon emissions produced by coal-generated electricity and burns cleaner than other fossil fuels.
Ideally positioned close to global powerhouse China and its northern gas pipelines, TMK is in an enviable position with its Gurvantes project to take the baton and race towards producing cleaner energy for Mongolia and the wider Eastern Asian region.
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