TMK Energy chief executive officer Dougal Ferguson said: “It is pleasing to see that our new technical work and updated reservoir simulation modelling is aligning closely with the recently measured pressure decline at the LF-06 well.”
While Mongolia is better known for copper and coal mines than gas fields, TMK’s Gurvantes XXXV project has long been eyed as a potential first mover in a region hungry for domestic energy supplies.
The project stretches across a huge 8400-square-kilometre expanse of the South Gobi Desert, less than 50 kilometres from China’s Shivee Khuren border crossing and close to important Chinese gas infrastructure.
In an area known for its enormous coal deposits – perfect for coal seam gas production – Gurvantes XXXV hosts a sizeable 1.2 trillion cubic feet (Tcf) 2C contingent resource and a whopping 5.3Tcf in prospective gas.
TMK has now drilled seven operational wells at its Lucky Fox pilot project within the broader project area and has been steadily turning up the dial on production since the start of the year.
With pressure falling, gas shows bubbling and groundwork lining up neatly with the modelling, TMK appears to be getting nearer to the commercial breakthrough it craves.
If the pressure curve keeps trending as predicted, the next chapter at Gurvantes XXXV could be the one that transforms a promising coal basin into a bona fide gas province.
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