TMK Energy Limited Commences Production Testing for Gurvantes XXXV CSG Project

TMK Energy Limited (ASX: TMK) is excited to announce that production testing has begun for the Pilot Well Program at the Gurvantes XXXV CSG Project in the South Gobi Basin of Mongolia. The three-well maiden Pilot Well Program has been successfully drilled, completed, and surface facilities have been installed and commissioned. This marks an important milestone for the Company as it moves into the extended production phase.

Successful Commissioning and Pumping Operations

Since the last update on July 13, 2023, the pumps on all three wells have started pumping operations at low speeds. Currently, the wells are producing water, which is being piped to a nearby storage pond for recycling by neighbouring mining operations. The initial water rates are in line with expectations, indicating favourable permeability.

Reservoir Depressurisation and Gas Breakthrough

Over the following weeks, the pump speeds will gradually increase, and the reservoir will begin to depressurise.

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While initial gas breakthrough is not expected immediately, previous independent reservoir modeling suggests that gas breakthrough may occur following the initial depressurisation of the reservoir. Once gas breakthrough occurs, the gas will be flared at the surface, and data will be analysed to aid future commerciality studies and pre-feasibility assessments.

Future Developments and Milestones

Upon reaching a sustained level of production, TMK Energy will make a decision on whether to utilise the Lucky Fox production wells for electricity generation for internal use and potential sales revenue. The wells are expected to initially flow high levels of water and low levels of methane gas. However, as the production test progresses, gas rates are anticipated to increase while water rates will decrease.

Mr. Brendan Stats, TMK Energy's Chief Executive Officer, expressed his appreciation for the team's efforts and commented, "The ability to move the Project forward so quickly, safely, and successfully and arrive at this very important milestone, is a product of both the world-class geology and the hard work of our dedicated team. We all look forward to seeing the fruits of our efforts in the coming weeks and months. "

The start of gas production from the extended production test will mark the transition of the Gurvantes XXXV CSG Project from the exploration phase to the appraisal and development phase for the Nariin Sukhait area. In the coming months, TMK Energy aims to further demonstrate the true scale of the project through its 2023 exploration program.

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