Management has begun planning for at least one additional pilot production well in the immediate vicinity of the existing Lucky Fox wells.
An additional well will assist in meeting the company’s licence commitment for further pilot wells this year and boost the production capacity at the complex.
TMK believes it can start to drill the additional well before the end of June, which would help to lift its production volumes and potentially add to gas sales under its gas sales agreement with Jens Energie LLC.
Additional wells help provide the extra pumping capacity needed to quickly reach the critical desorption pressures for the project to deliver an immediate uplift in gas production.
TMK recently implemented advanced Distributed Temperature Sensing (DTS) technology in wells LF-05 and LF-06 to provide it with valuable information on reservoir productivity.
Final DTS analysis confirms most of the water is being produced from the coal seams, not from adjacent aquifers or non-coal bearing zones, providing strong indication of coal seam permeability.
The DTS technology is designed to identify zones of increased gas and water influx or permeability, for increased economic viability.
The company’s new production record was achieved despite one of its better production wells, LF-05, recording significant downtime for a pump clean-out and work over.
LF-05 is the sole well not producing while remedial actions are being taken to bring it back into production.
The company expects to shortly produce commercial rates of gas from the project across 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.
Like many nations, Mongolia is keen to transition away from energy produced from burning coal. Coal seam gas is considered ideal as a “clean transition fuel” because it produces about half the carbon emissions produced by coal-generated electricity and burns cleaner than other fossil fuels.
TMK believes its Gurvantes XXXV project can become a regionally significant, reliable source of natural gas for both Mongolia’s domestic market and regional energy infrastructure.
The project’s proximity to northern China’s gas pipelines places TMK in a pre-eminent position.
With TMK’s production numbers ramping higher every month, the company is well-placed to become a leading energy contributor to the region.
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