Talon Energy has been advised by TMK Energy Limited that the initial gas from the Lucky Fox -1 pilot well has flowed to the surface and been flared. Since they were commissioned, all three production wells have been completely operational and are currently producing.
Talon Energy (ASX: TPD) has released further information about the Pilot Well Programme at the Gurvantes XXXV CSG Project (Talon 33%, TMK 67%) in the South Gobi Basin of Mongolia.
Operator of the Gurvantes XXXV Coal Seam Gas Project and Company Joint Venture partner TMK Energy has reported that the South Gobi Basin Pilot Well Programme is performing as expected.
Yesterday, initial gas from build-up in the casing of the Lucky Fox well was brought up to the surface and flared. This marked the first time gas from the Gurvantes XXXV Project was brought up to the surface. During this time, around three hours, the well was flowing, which not only provided significant data but also demonstrated the potential to flow gas from the coal seams that the Project is aiming to access.
This could take several weeks or months, but the Company will keep the market informed when new information on these indicators becomes available about Gurvantes XXXV CSG Project.
Gas was initially produced and flared from the Lucky Fox well, which is a promising sign at this early stage. However, this flow was not sustained, so it is not a reliable predictor of future sustained gas flow rates from this well or other wells in the Project area.
Talon Energy Ltd (TPD) is an Australian and Mongolian oil and gas explorer listed on the Australian Stock Exchange and positioned for rapid expansion in the near future. The company is committed to creating long-term value for its shareholders by maintaining a diverse and well-balanced asset portfolio.
Commenting on the matter was Mr. Colby Hauser, Managing Director and Chief Executive Officer of Talon:
We are pleased to announce the positive results from the extended production test and the promising early signs from the performance of the three pilot wells and we look forward to updating the market further. Since commissioning approximately one week ago, all three wells have been continuously on pump and over that period, the pump speeds have gradually been increased in order to slowly reduce the fluid levels in the wells and therefore hydrostatic pressure in the reservoir.
The wells are currently producing approximately 500 bwpd (combined) and the fluid levels in the wells are continuing to slowly decrease.
