TMK Energy Co. has let a drilling contract to the Mongolian operating subsidiary of Major Drilling Group International Inc. for TMK’s pilot well program at the Gurvantes XXXV coal seam gas (CSG) project in Mongolia.
The program proposes three production wells near the Snow Leopard-02 (SL-02) exploration well. Results from SL-02 have been integrated into modeling work undertaken by SLB which has shown positive indications on both early gas breakthrough and production rates, the company said in a release Feb. 15. The modeling work suggests a high degree of confidence that the upcoming program will deliver a proof of concept and gas flow to surface at relatively high production rates compared to CSG wells globally, the company continued.
The program is expected to take about 8 weeks to complete drilling of the wells and installation of pumps. The wells will then be tied into the surface infrastructure, which includes metering skids, a flare stack, and water disposal system. The pumps will then start pressure drawdown prior to gas breakout. Once commissioned, the pilot wells will be operated for about 6 months to understand water and gas production profiles.
Work is under way to determine if there is an economical and environmentally sensible way to utilize gas produced to surface during early stages of the production test rather than flaring, TMK said.
Drilling operations are scheduled to begin in April, with preparation of drilling locations, site works, and purchase of long lead items (currently in transit to site) already under way.
Following the election of Talon Energy to proceed with Stage 2 of the farm-in agreement in December 2022, Talon will fund the first $3.15 million of the expected $3.5-million program cost. The balance is split 67-33, representative of the companies' project interests. TMK’s share is estimated to be $235,000.