TMK Energy's Gurvantes Project: Doubling Production Capacity
TMK (TMK) Share Update November 2024 Tuesday 19th
TMK Energy Nears Completion of New Wells at Gurvantes Project
TMK Energy Limited is on the brink of a significant milestone as it prepares to double the production capacity at its Gurvantes XXXV Coal Seam Gas Project with the completion of three new wells.
Instant Summary:
- Successful installation of production equipment in wells LF-05 and LF-06.
- Final well LF-04 nearing completion.
- All three new wells expected to be operational by the end of November.
- Production capacity to double, enhancing gas output significantly.
- Full pumping capacity expected by early next year.
Project Progress
TMK Energy Limited (ASX: TMK) has announced significant progress in its Gurvantes XXXV Coal Seam Gas (CSG) Project, with two out of three newly drilled pilot production wells, LF-05 and LF-06, successfully equipped with downhole production tubing, rods, pumps, and Distributed Temperature Sensing (DTS) cables.
The final well, LF-04, is in the final stages of completion, with downhole activities expected to conclude in the coming days. The company is on track to tie in these wells to existing surface facilities, including electrical connections and water lines, with metering skids set to be connected soon.
Production Capacity Expansion
Once operational, these three new wells will complement the existing three wells (LF-01, LF-02, and LF-03), effectively doubling the production capacity of the pilot well complex. This expansion covers an approximate 2 square kilometer surface area, significantly boosting the project's output potential.
TMK Energy's CEO, Dougal Ferguson, expressed confidence in the project timeline, stating that the company remains on track to have all six pilot production wells online by the end of November. This development is expected to accelerate the achievement of critical desorption pressure, a key factor in enhancing gas production rates.
Future Outlook
The new wells will be gradually brought online in accordance with industry best practices and TMK's reservoir management plan. The company anticipates reaching full pumping capacity by early next year, with periodic pressure measurements in the reservoir commencing in Q1 2025.
This milestone marks a significant advancement for TMK Energy, reflecting months of dedicated work by teams in Mongolia and Australia. The company is committed to keeping shareholders informed as it progresses toward becoming Mongolia's first commercial natural gas producer.
The completion of the new wells at the Gurvantes XXXV CSG Project is expected to have a positive impact on TMK Energy's stock, as it represents a substantial increase in production capacity. This could enhance the company's revenue potential and market position, attracting investor interest.
Investor Reaction:
Analysts are likely to view this development positively, as it demonstrates TMK Energy's ability to execute its expansion plans effectively. The anticipated increase in production capacity could lead to improved financial performance, bolstering investor confidence.
Conclusion:
Investors should monitor TMK Energy's progress closely as the company approaches a pivotal moment in its operational expansion. The successful commissioning of the new wells will be a critical factor in TMK's growth trajectory and its goal of becoming a leading natural gas producer in Mongolia.