LA Private

Talon Energy lights ip Gurvantes XXXV CSG Project

Talon Energy Ltd. (ASX:TPD) recently announced a significant milestone in its Gurvantes XXXV Coal Seam Gas (CSG) Project in the South Gobi Basin of Mongolia.

The Operator, TMK Energy Limited (ASX:TMK), informed Talon that initial gas from the Lucky Fox-1 pilot well flowed to the surface and was flared, marking the first gas flowed to surface for the project.

All three production wells at the Gurvantes XXXV CSG Project, operated jointly by Talon Energy (33%) and TMK (67%), have been fully operational since commissioning.

The combined production from these wells is currently around 500 barrels of water per day (bwpd). Reservoir pressure in all three wells is decreasing as expected.

Mr. Colby Hauser, Talon’s Managing Director, and Chief Executive Officer expressed satisfaction with the positive results from the extended production test and the promising early signs from the performance of the three pilot wells. He emphasised the company’s commitment to providing further updates to the market.

The wells have been on pump since commissioning, and pump speeds have gradually increased over the past week to reduce fluid levels in the wells and lower hydrostatic pressure in the reservoir.

As the fluid levels continue to decrease, the reservoir is expected to depressurise, leading to substantive and continuous gas desorption from the coal seams.

This process may take several weeks or months, and Talon Energy will continue to keep the market informed with essential metrics and data. It is worth noting that while the initial gas flow from the Lucky Fox-1 well is considered a positive indicator at this early stage, it was an unsustained flow and may not necessarily reflect future sustained gas flow rates.

Talon Energy’s efforts in the Gurvantes XXXV CSG Project reflect its commitment to exploring and harnessing coal seam gas resources in the region. As more data becomes available, the company remains focused on updating stakeholders on the project’s progress and its potential impact on the energy landscape.