Talon Energy Ltd (ASX:TPD) partner TMK Energy Ltd has closed the books on a drilling campaign at the Lucky Fox-2 CSG well in Mongolia’s South Gobi Basin.
The pilot well was drilled to 407 metres in total depth, intersecting 62 metres of gassy coal as the energy partners brought the well online safely, on time and within budget.
With the well now complete, TMK has installed production casing and tubing ahead of pump installation and six months of production testing.
The drill rig is now mobilising to the Lucky Fox-3 drill site, where it’s preparing to drill the final well in Talon and TMK’s Gurvantes XXXV pilot well program.
Talon has a 33% holding in the Gurvantes coal seam gas (CSG) project and is primarily funding the pilot program under a stage two farm-in agreement, which it inked in December last year.
Production testing to come
TMK Energy CEO Brendan Stats said: “Our drilling team continues to deliver with two of our three pilot production wells being drilled on time and on budget with no operational issues.
“The rig is now moving to the final well in the program, Lucky Fox – 3, which is expected to commence drilling in the next few days following the rig move and some routine maintenance.
“Upon completion of the drilling operations, the production wells will be connected to surface facilities and the wells placed on pump over a six-month production testing period.
“The data gathered from the production test will deliver valuable information to help formulate the development plan for the Nariin Sukhait area, while we head east with our 2023 exploration program in an effort to add to the already significant contingent (2C) resource the Gurvantes XXXV Project delivered from the 2022 exploration program.”
Next steps
Talon and TMK’s pilot well program includes three individual production wells, spaced roughly 200 metres apart. Drilling is slated for completion this month, paving the way for surface facility and pump installation.
The pilot well pumps will then be commissioned, followed by a controlled dewatering process.
Talon and TMK expect to see their first gas breakthrough within one to two months after the wells are placed on production.
About Gurvantes
The Gurvantes XXXV Project covers roughly 8,400 square kilometres and is in what is considered one of the most prospective coal seam gas basins globally.
Gurvantes is 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, making it ideally placed to satisfy both local Mongolian and Chinese energy requirements.