TMK Energy has set a new daily gas production record at its Gurvantes XXXV Coal Seam Gas Project in Mongolia, with the LF-07 well leading a promising upward trend.
- Daily gas production exceeds 25,000 scfd at Gurvantes XXXV
- LF-07 well shows accelerating gas output and potential coal gas desorption
- Pressure build-up tests confirm reservoir pressure decline as expected
- Positive signs of expanding gas saturation in the pilot project area
- Company optimistic about sustained production growth in coming months
Record Gas Production Milestone
TMK Energy Limited (ASX: TMK) has announced a significant production milestone at its 100% owned Gurvantes XXXV Coal Seam Gas Project in Mongolia, with daily gas output surpassing 25,000 standard cubic feet per day (scfd) for the first time. This achievement marks a new high-water mark for the pilot well project, underscoring the company’s progress in developing its coal seam gas resources.
LF-07: The Rising Star
The standout performer driving this record is the LF-07 well, which has recently accelerated its gas production to over 13,000 scfd and continues on a steady upward trajectory. Notably, LF-07 is unique among the wells as it was drilled with the fluid level left above the coal seam, potentially preserving reservoir integrity by avoiding exposure to atmospheric pressure. This may explain the well’s impressive performance and suggests minimal reservoir damage.
Encouraging Reservoir Dynamics
Recent pressure build-up tests on other wells, including LF-01 and LF-04, have confirmed a decline in reservoir pressure consistent with TMK’s reservoir model. This pressure drop is a critical factor in coal seam gas projects as it facilitates the desorption of gas from the coal seams. Early indications suggest that LF-07 is already experiencing gas desorption, a promising sign that the reservoir is responding well to production activities.
Outlook for Expansion
The development of a localized gas saturation zone within the pilot project area hints at the potential for broader expansion of gas production as reservoir pressure continues to decline with ongoing water extraction. Other wells in the pilot area are performing as expected, reinforcing confidence in the company’s understanding of the coal and reservoir characteristics.
Management’s Perspective
TMK’s CEO, Dougal Ferguson, expressed cautious optimism about the recent production gains, highlighting the significance of LF-07’s performance and the encouraging trend of increasing gas rates. He emphasised that these developments are exciting for both the company and its shareholders, with expectations that the upward momentum in gas production will continue in the near term.
Bottom Line?
TMK Energy’s latest production surge at Gurvantes XXXV sets the stage for potential growth, but sustained performance will be key to unlocking full project value.
Questions in the middle?
- Will LF-07’s gas production continue to rise steadily over the next quarters?
- How will reservoir pressure trends impact long-term gas desorption and output?
- What are the implications of these results for TMK’s broader development strategy in Mongolia?