Talon Energy Ltd (ASX:TPD) joint venture partner TMK Energy Ltd is making significant strides with its Pilot Well Drilling Program in Mongolia's South Gobi Basin. The Gurvantes XXXV CSG Project, a joint venture between TMK (67%) and Talon (33%), is reaching its final stages.
TMK CEO Brendan Stats confirmed the program's final well is now in progress, with completion expected by the end of the month. This marks a major milestone, as two wells, Lucky Fox-1 and Lucky Fox-2, are primed for pump installation.
“We now have two wells secured and ready for pump installation and tie into our production facilities which is scheduled to occur during June, before full commissioning in July,” Stats said.
Lucky Fox-1 and Lucky Fox-2 both intersected approximately 60 metres of gassy coal as prognosed which proves our geological model is sound and bodes well for the six-month production test that will follow in the second half of this year.”
The third well, Lucky Fox-3 (LF-03), launched its drilling operations late last night. Located about 175 metres southwest of LF-02, it represents the last of the three pilot production wells in the Nariin Sukhait area within the Gurvantes XXXV CSG Project. The drilling of LF-03 is projected to last around two weeks.
The Pilot Well Program's financial backing primarily comes from Talon Energy, which chose to advance to Stage 2 of the Farmout Agreement in early December 2022, contributing the initial US$3.15 million towards an estimated budget of around US$3.5 million. Any subsequent costs exceeding US$3.15 million will be split proportionately between TMK and Talon.
With the final well now under operation, TMK's Gurvantes XXXV CSG Project is poised to demonstrate its full potential. The completion of the drilling activities and the upcoming production test will offer valuable insights into the area's coal gas resources.
The Gurvantes XXXV Project
The Gurvantes XXXV Project covers an area of 8,400 square kilometres and is in what is considered one of the most prospective coal seam gas basins globally. Gurvantes is situated less than 20 kilometres from the Chinese-Mongolian border and close to the extensive Northern China gas transmission and distribution network. It is also proximate to several large-scale mining operations with high energy needs.
Gurvantes is ideally placed to satisfy both local Mongolian, as well as Chinese, energy requirements.