The maiden pilot well program at Talon’s Gurvantes XXXV coal seam gas project in Mongolia is progressing on schedule with production testing to begin in mid-July.

Surface facilities including gas flaring system, gas metering skids, produced water pipeline and other associated civil works are now over 80% complete.

Additionally, downhole pump installation and commissioning are expected to be completed in early July.

Talon Energy (ASX:TPD), alongside JV partner and operator TMK Energy, had successfully completed all three pilot production wells in May and expect to bring them online for a six-month production testing from mid-July to understand the reservoir performance of the upper coal seam at the Nariin Sukhait location.

As is the case with CSG wells, initial production is expected to feature high levels of water and low levels of methane gas though both gas and water production will switch places over time.

Sustained initial gas production is not expected to occur until several months after the pumps are switched on.

This testing will also assist in the assessment of the overall commerciality of the best estimate (2C) Contingent Resource of 1.2 trillion cubic feet.

Final step in exploration journey

Managing Director and CEO of Talon Energy, Colby Hauser commented:

“We are pleased to witness the ongoing progress of our maiden pilot well program for Gurvantes. TMK has been delivering on schedule as an operator and we look forward to the next step which includes flowing gas to surface from this pilot well program.”

“The Gurvantes Project is an important asset for the Nariin Sukhait area and over time we are confident that it will deliver significant economic benefits to the region and to shareholders.”

Talon is funding the first US$3.15m of the pilot program cost, which is estimated at US$3.5m, to complete its farm-in to the project.

This article was developed in collaboration with Talon Energy, a Stockhead advertiser at the time of publishing.

This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.

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