TMK starts drilling seventh gas production well in | Australian Markets

TMK Energy has began drilling a seventh production well to increase capability at its Lucky Fox Pilot Well project in southern Mongolia, utilizing a bigger, more highly effective TXD200 rig for the primary time in the nation.

Canadian firm Major Drilling is drilling the LF-07 pilot production well to additional cut back the reservoir stress in direction of the focused crucial desorption stress. The extra well ought to enhance the depressurisation sought on the project and bump up whole production capability.

A current impartial technical review really helpful management utilise the bigger TDX200 rig, which additionally has a more superior mud system to drive drilling efficiencies.

The new well is being accomplished on a fixed value “turnkey” contract with Major Drilling to minimise TMK’s publicity to value overruns.

The Canadian-based drilling firm has drilled all six earlier pilot wells on the project web site.

The Lucky Fox project, which is a component of TMK’s wider Gurvantes XXXV coal seam gas project, has progressively lifted gas output this yr, setting a number of month-to-month information for gas quantity produced.

The company expects to shortly produce business charges of gas throughout its 60-square-kilometre project in the Nariin Sukhait space of Mongolia’s huge countryside.

We have commenced drilling of our seventh pilot production well in the Lucky Fox Pilot Well project, which is one other constructive step ahead for the project… With all six current wells on production, together with LF-05, which has not too long ago been efficiently remediated, we stay up for bringing LF-07 on production and persevering with to grow our gas production capability.

Management has not too long ago had stress build-up checks performed at its LF-01, LF-02 and LF-03 wells, encouragingly demonstrating important reductions in the reservoir stress within the previous two years and offering an total enchancment in reservoir depressurisation.

The first gas slugs, massive high-pressure gas bubbles, which have fashioned in its Lucky Fox wells LF-04 and LF-06, indicate that the pilot well program is heading in direction of crucial desorption stress.

One of the company’s key goals this yr is to cut back the reservoir stress under the crucial desorption stress, with gas charges anticipated to increase considerably when the target is achieved.

That’s why the company has drilled three new production wells this yr – LF-07 would be the fourth.

The latest well will help meet the company’s licence dedication for additional pilot wells this yr at its Gurvantes XXXV project and enhance the production capability on the advanced.

TMK believes the extra well will help present the additional pumping capability needed to rapidly attain the crucial desorption pressures for the project to ship an quick uplift in gas production.

After finishing LF-07, the company plans to drill up to 5 exploration wells in a extremely potential space, about 60km east of Nariin Sukhait.

The 2025 exploration drilling program is taken into account comparatively low-cost however may have a large impression on building the company’s important 2C contingent assets in the area.

The company’s contingent useful resource of 1214 billion cubic ft (BCF) of natural gas is Mongolia’s largest. The project presently incorporates a 5300BCF potential useful resource throughout a whole 8400 sq. kilometres of ground.

Like many countries, Mongolia is eager to transition away from power produced from burning coal. Coal seam gas is taken into account very best as a “clean transition fuel” as a result of it emits about half the carbon of coal-generated electrical energy and burns cleaner than different fossil fuels.

TMK believes its Gurvantes XXXV project has the large benefit of proximity to northern China’s gas pipelines and supplies the company with the chance to turn into a regionally important, dependable source of natural gas provide for Mongolia’s home market and the area’s power infrastructure.

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