TMK Energy Limited has announced significant progress in the Gurvantes XXXV CSG Project in the South Gobi Basin of Mongolia as a sustained gas flow has been achieved at the three pilot wells.
The gas flows are sufficient enough to support continuous flares for each of the wells — Lucky fox – 1, Lucky Fox – 2 and Lucky Fox – 3.
TMK Energy CEO Brendan Stats stated: “We are well ahead of where we expected to be at this stage of the extended production test, and we now have demonstrated the ‘proof of concept’ that the coals in the project area can produce gas to surface via simple, unstimulated, shallow vertical wells. With the three wells now consistently flowing gas at rates sufficient to support a sustained flare, it is with confidence we can say we have reached critical desorption pressures in these wells. This is a fantastic outcome, particularly this early in the extended production test.”
Commissioning began approximately three weeks ago and all three wells have been continuously on pump with speeds gradually increasing at a slow rate to reduce the fluid levels in the wells — preventing an excess of hydrostatic pressure in the reservoir.
The three wells are currently generating a total of over 600 barrels of water per day, which indicates good permeability.
Current low gas rates are expected to increase over time in accordance to the decrease in fluid levels as the pressure in the reservoir falls.
TMK Energy expects to release an initial gas rate that is predicted to increase over the six months of the extended production test — once each well reaches optimal fluid level.
The Gurvantes XXXV Project is located less than 20 kilometres from the Chinese-Mongolian border, close to the extensive Northern China gas transmission and distribution network.
It covers a total area of 8,400 square kilometres and is also close to several large-scale mining operations with high energy needs.
