TMK Energy Hits Major Milestone at Gurvantes Coal Seam Gas Project in Mongolia
TMK Energy (ASX: TMK) has achieved another key milestone in its plans to develop a coal seam gas (CSG) project to meet energy demand in Mongolia and China.
Just days after signing a strategic alliance agreement with Chinese energy consulting firm J-Energy, TMK has successful drilled new pilot production well LF-07 at the Gurvantes CSG project.
After the company had drilled and cased to a total depth of 420 metres, subsequent logging results found the well intersected approximately 54m of net coal, as TMK had expected and consistent with existing surrounding pilot production wells.
Giant Rig a Success
Contractor Major Drilling conducted the drilling operations on a fixed cost contract using its larger and more powerful TXD200 drilling rig, the first time the rig has been used in Mongolia.
The work at LF-07 wraps up 12 months of drilling during which TMK successfully completed four additional pilot production wells, more than doubling the project’s production capacity.
“This is yet another successful outcome for our pilot project, with the latest pilot production well intersecting the upper coal seam at the prognosed depth and expected thickness,” chief executive officer Dougal Ferguson said.
The next stage at the pilot project will involve installing the down hole pump and associated equipment, followed by commissioning activities ahead of moving the well to production.
Mongolian Gas First
TMK is working towards becoming the first CSG producer in Mongolia and aims to be a key player in the region’s energy future.
This involves partnering with Beijing-based J-Energy to build a gas-fired power plant and potentially supply gas to China, with J- Energy to assist in field development studies at Gurvantes and providing geological, engineering and project development expertise as TMK begins the process of securing project partners.
The partners will also investigate additional services including operational support for production and logistical support for procurement of equipment and services out of China into Mongolia.