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Australia-listed but Mongolia-based gas explorer nanocap TMK Energy (ASX:TMK) has its newest pilot wells now producing. The company spent the COVID-19 era shoring up its Gurvantes XXXV fracking in the Gobi with mixed success (but lasting in the region longer than competitors Talon Energy and Elixir).
The company wrote on Monday it is ” now leading the way on proving up the enormous potential of the nascent Mongolian Coal Seam Gas industry.”
All six pilot wells the subject of TMK’s Monday update are “working together to accelerate the pathwaty to reaching the… pressure required to deliver material gas flow increases,” the company added.
Wells were brought online over the weekend.
A program between six to eight weeks will now kick off with downhole pump speeds to be increased slowly as waters and other fluids are removed from the wells prior to gas flows.
Those flows, once running at desired capacity, will “materially increase… enabling a clear understanding of the overall production profile.”
As TMK CEO Dougal Ferguson sees it, the company is still in the run to become the first to produce ‘commercial rates.’
“We believe we now have all the tools in place to deliver on our objective of being the first company to produce commercial rates of gas from the enormous coal seam gas resources that exist in Mongolia,” Ferguson said.
The company has long highlighted its relative proximity to nearby Mongolian and Chinese cities, but should the company succeed in producing commercial volumes of gas, it then needs to build pipelines through the Mongolian desert.
And that ‘closeby’ nature is, compared to the otherwise vast Gobi, relative.
“With six closely spaced pilot production wells now online, we have doubled the production capacity at this location within the field and given the Project every chance of demonstrating that commercial gas rates can be achieved from these very thick coal seams,” Ferguson added.
TMK last traded at 0.3cps.
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