TMK Vitality Ltd. stated Thursday all seven manufacturing wells within the pilot section of the Gurvantes XXXV Coal Seam Gasoline (CSG) Undertaking within the South Gobi basin of Mongolia are on target to achieve optimum charges by the tip of August.
“[T]he LF-07 pilot manufacturing properly on the One hundred pc-owned Gurvantes XXXV Coal Seam Gasoline Undertaking has been efficiently accomplished for manufacturing and is now present process remaining commissioning actions with the properly anticipated to be positioned on manufacturing within the coming days”, the West Perth, Australia-based firm stated in a regulatory submitting.
“The corporate additionally took the chance to carry out upkeep on the LF-06 pilot manufacturing properly while sources had been out there onsite. LF-06 was labored over with the downhole pump pulled and cleaned, and the fill on the backside of the properly cleaned out to scale back the potential of future manufacturing interruptions with that properly. LF-06 was efficiently positioned again on manufacturing earlier this week.
- Advertisement -
“With seven producing wells on the Pilot Nicely Undertaking, the corporate now has enough redundancy out there to permit it to plan routine and therefore cost-efficient preventative upkeep (i.e. scheduled workovers) upfront which can help with the implementation of the general reservoir administration plan and in the end, ought to ship greater charges of water and gasoline manufacturing”.
Final December TMK signed a binding memorandum of understanding with Jens Energie LLC (JEL) for the offtake of gasoline from the primary six pilot wells. JEL is anticipated to transform the gasoline into electrical energy for provide to Mongolian prospects.
The undertaking spans about 8,400 sq. kilometers (3,243.26 sq. miles). The positioning is lower than 20 kilometers (12.43 miles) from the Chinese language border and close to current gasoline infrastructure in northern China. TMK says the situation presents a possible for export to China.
“With the drilling operations section now full, there is no such thing as a additional main capital expenditure deliberate on the Pilot Nicely Undertaking within the quick to medium time period”, TMK chief government Dougal Ferguson stated Thursday.
“All the information continues to level to a constructive consequence being achieved within the coming months, with reservoir pressures persevering with to scale back in direction of the goal essential desorption strain”, Ferguson added. “With the assistance of extra manufacturing knowledge acquired from LF-04, LF-05 and LF-06 since early 2025, we’re gaining a greater understanding of the reservoir and inserting a renewed emphasis on the general reservoir administration plan with the target of maximizing each water and gasoline manufacturing within the close to time period and in the end proving commerciality of the useful resource”.
TMK added, “A refined reservoir administration plan is being developed and shall be carried out at the side of LF-07 being introduced on manufacturing, at which era the impression of the reservoir strain discount at that location might be reliably measured”.
“This vital knowledge level will display how a lot the strain within the reservoir has been lowered on the LF-07 location (roughly equidistant from LF-01, LF-02 and LF-05) for the reason that inception of manufacturing on the Pilot Nicely Undertaking and supply extra knowledge with respect to the impression of LF-07 on close by wells”, TMK stated
“The conclusion of drilling operations marks the tip of an intensive interval of capital spending which is now forecast to scale back considerably within the quick to medium time period with focus returning to optimizing manufacturing charges, sustaining a low, match for function value base and sourcing undertaking companions to co-fund the subsequent stage of growth of the Gurvantes XXXV Undertaking”.
In June 2024 TMK stated Mongolia’s Surroundings and Tourism Ministry permitted the undertaking’s environmental impression evaluation, permitting the corporate to conduct drilling and appraisal actions by means of 2029.
To contact the writer, e-mail jov.onsat@rigzone.com
What do you assume? We’d love to listen to from you, be a part of the dialog on the
Rigzone Vitality Community.
The Rigzone Vitality Community is a brand new social expertise created for you and all vitality professionals to Converse Up about our trade, share data, join with friends and trade insiders and have interaction in an expert neighborhood that can empower your profession in vitality.
