TMK Energy poised to begin Gurvantes pilot well program by mid-April

With all regulatory and environmental permits in place, TMK Energy is set to begin the pilot well program at the Gurvantes XXXV Project in Mongolia in the coming weeks.

The pilot well program comprises the drilling of three individual production wells spaced roughly 200m apart and centred on the SL_02 exploration well location, which is expected to take around seven weeks.

Once drilling is completed, downhole pumps will be installed and surface facilities will be connected to the wells, which TMK Energy (ASX:TMK) estimates will take four weeks from the completion of drilling.

The pilot well pumps will then be commissioned, and the dewatering process will begin in a controlled manner with first gas breakthrough expected within one or two months from being placed on production.

Project aims to demonstrate potential of coal seam gas

TMK’s CEO says it is an exciting stage for the team as the drill rig makes its way to site after the significant efforts of many during the preparative stages of planning.

“With commencement now imminent, it signals the start of eight months of activity on site,” he highlights.

“Last year’s work program identified significant gas resources in the ground, and the pilot well program aims to demonstrate that we can flow gas to surface at attractive commercial rates.

“The Pilot Well Program represents an important milestone in the project development as we aim to take our first step toward commercialisation, demonstrating the potential of coal seam gas in the Gurvantes project.”

Project details

The Pilot Well Program is being primarily funded by Talon Energy (ASX:TPD), TMK’s partner in the Gurvantes XXXV Project.

Talon elected to enter Stage 2 of the farmout agreement in early December 2022 and is paying the first US$3.15 million towards what is budgeted to be roughly US$3.5 million, with TMK and Talon paying their proportionate share of further costs over and above US$3.15 million.

This article was developed in collaboration with TMK Energy (ASX:TMK), 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.