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Mongolia|economy|October 15, 2024 / 01:56 PM
Mongolia may start supplying its own gas to China

AKIPRESS.COM - TMK Energy has launched the drilling of an additional three coal seam gas pilot production wells at its Gurvantes XXXV project in Mongolia's South Gobi Desert, the West Australian reportedjavascript:mctmp(0);.

The wells, which lie within the company's Lucky Fox site, have been designed to accelerate gas flow rates at the site and prove the commerciality of the expansive upper coal seam. Drilling is expected to provide the extra pumping capacity needed to quickly reach the critical desorption pressures for the project to expedite an uplift in gas production rates from all of the pilot wells.

The company has enlisted leading Canadian TSE-listed firm, Major Drilling Group, to carry out the planned program and expects each new pilot well to take between seven and 10 days to complete. Once the drilling campaign is finished, the wells will be immediately commissioned and placed into production.

The company says the additional pumping capacity is expected to both speed up the process of reaching the critical gas desorption pressure, in addition to delivering a substantial increase in gas production rates on time and on budget.

The company emphasized its plans to use cutting-edge temperature testing technology in two of the new pilot production wells. In a first for coal seam gas, the Distributed Temperature Sensing (DTS) technology will be employed to help optimize its well and reservoir modelling of the project's upper seam.

That strategy has been designed to identify zones of increased gas and water influx, or permeability, for increased economic viability.

The DTS tech is expected to assist the company in its understanding of the reservoir characteristics, enabling future wells to target optimised production performance from "sweet spots" within the coal seam.

In parallel with the drilling program, TMK has also launched an entitlements issue, providing existing shareholders the opportunity to participate in the company's ongoing funding round.

With a strategic location near the Chinese border and access to significant gas infrastructure, TMK is continuing to position itself as a key player in helping transition Mongolia away from coal and foreign energy reliance. The resulting flow rates from its new campaign will be keenly monitored in coming months as the company looks to leverage its world-class resource to supply both the domestic and regional markets.

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