TMK Energy Nears Crucial Gas Flow Milestone in Mongolian Project
TMK Energy Nears Gas Flow Milestone in Mongolia

TMK Energy is advancing steadily toward a pivotal milestone at its wholly owned Gurvantes XXXV coal seam gas pilot well project in Mongolia, with recent pressure tests indicating significant progress toward achieving gas flow.

Pressure Testing Confirms Reservoir Improvement

The company has successfully conducted pressure build-up tests at its Lucky Fox one and four wells, which were shut in for 14 and 8 days, respectively. These tests confirm that reservoir pressure has continued to improve since earlier readings taken in November, aligning closely with TMK's updated reservoir simulation model.

Critical Desorption Level in Sight

The latest data reveals that the upper coal seam water pressure is steadily declining toward the critical desorption level required for gas to flow freely. Once sufficient water is pumped out, methane separates from the coal matrix, transitioning the wells from water-dominated to gas-dominated outflow. This stage is crucial for meaningful coal seam gas production.

TMK Energy Chief Executive Officer Mr Dougal Ferguson stated, "This is yet another key data point which demonstrates that the coals within our project area are being depressurised and that measurable progress is being made, which will ultimately deliver much higher gas rates once the desorption pressure is reached. A large body of technical work is nearing completion that clearly demonstrates how we see the development plan unfolding."

Supporting Evidence and Future Prospects

Adding further support to its progress, the company notes that this pressure trend mirrors that of other nearby wells, suggesting not only a quicker arrival at desorption but also that potential gas volumes are already sufficient to support a 2-5 megawatt power generation project this year. The new data indicate TMK has made steady progress in de-risking the play as it continues to drive its pilot program forward.

With results marking a solid step on its critical desorption journey and pressure trends closely tracking expectations from the company's model, TMK appears poised to maintain its momentum in Mongolia's emerging coal seam gas scene.