- TMK Energy (TMK) flows its first gas to the surface at its Gurvantes project in the Mongolian Gobi region
- The company concludes the gas produced from the Lucky Fox– 1 well was unsustained and the flow is not indicative of what levels of gas flow rates could be achieved
- Only a small handful of Australian energy companies are active in the Gobi, which is in relative proximity to China, the end market where TMK foresee its product going
- TMK continues to gradually increase pump seeds, and as the fluid levels decrease, more substantive and continuous gas the coals are expected to commence
- TMK shares are up 7.14 per cent, trading at 1.5 cents at 12:12 pm AEST
TMK Energy (TMK) has officially flowed the first gas flare to surface at its Mongolian Gobi Desert acreage, dubbed the Gurvantes XXXV CSG project.
TMK and its partner have proved geotechnical presumptions correct, which is that gaseous coal bodies littered underneath the Mongolian Gobi desert are full of methane, the main constituent of natural gas.
However, the company has concluded the gas produced from the Lucky Fox-1 well was an unsustained flow and is not indicative of what levels of sustained gas flow rates could be achieved.
TMK is planning to pipe energy to China, where the government technically oversees Mongolian affairs; however, the country also retains close links to Russia.
The gas of the first well was flared to the surface, with the pilot program consisting of three wells to be tested altogether, which have produced some 500 barrels of water per day.
“The flaring of the gas for over three hours proves there is gas in the system that can be and is flowing to the surface, and we now aim to demonstrate that gas can be produced at a sustained economic rate as we proceed with the extended production test,” TMK CEO Brendan Stats said.
“The good water rates combined with the decreasing fluid levels in each of the wells is very encouraging.”
TMK announced it would continue to gradually increase pump seeds over the coming weeks, and as the fluid levels decrease more substantive and continuous gas desorption from the coals is expected to commence.
With the process taking up to several weeks or months, the company reported it will continue to provide regular updates to shareholders.
TMK shares were up 7.14 per cent, trading at 1.5 cents at 12:12 pm AEST.