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- TMK Energy (TMK) secures all regulatory and environmental approvals to move forward with its Pilot Well drilling program at its Gurvantes XXXV CSG project in Mongolia
- TMK CEO Brendan Stats says the company expects to see early gas breakthroughs that will build higher over the six-month test period
- The company has built a semi-permanent 40-person camp to house its drill rig and staff while it awaits a rig from contractor Major Drilling
- The drilling of three production wells is expected to begin in two weeks and take seven weeks to complete
- TMK shares are up 5.9 per cent and trading at 1.8 cents at 11:04 am AEST
TMK Energy (TMK) has secured all regulatory approvals to move forward with its seven-week pilot well drilling program within the Nariin Sukhait area of its Gurvantes XXXV CSG project in the South Gobi Basin of Mongolia.
TMK will test its production wells for gas flow rates over a six-month production test period once drilling is complete.
The company on Monday said it had built a semi-permanent 40-person camp to house its drilling and operations staff, and it was now awaiting a drill rig from an international drilling service company, Major Drilling, to begin drilling.
Production will take off in two weeks at the company’s SL_02 exploration well location, with each of its wells spaced 200 metres apart.
TMK Chief Executive Officer Brendan Stats said the company expected to see early gas breakthroughs that would build higher over the six-month test period at the Gurvantes CSG project.
“Last year’s work program identified significant gas resources in the ground, and the pilot well program aims to demonstrate that we can flow gas to surface at attractive commercial rates,” Mr Stats said.
“We continue to progress planning for gas-fired power generation to utilise produced gas and help meet demand for reliable energy in the area from ‘MAK’, our local off-take partner.”
TMK said the gas flow rates achieved from the production testing would be more environmentally efficient than flaring the gas into the atmosphere.
The company is confident the Pilot Well program will be sufficient enough to use for power generation and be sold to existing coal mining operations in line with its MAK agreement.
Planning for the installation of gas-powered electricity generation units is advancing, as TMK expects its first gas breakthrough within one or two months of production.
TMK shares were up 5.9 per cent and trading at 1.8 cents at 11:04 am AEST.
