TMK Energy Limited (ASX: TMK) Announces Gas Production Milestone
Gas Production Commences
TMK Energy Limited (ASX: TMK) has announced that gas production has begun from three new pilot production wells (LF-04, LF-05, LF-06) at the Gurvantes XXXV Coal Seam Gas (CSG) Project. This aligns with company expectations, demonstrating the effectiveness of the recent drilling campaign.
With the addition of these new wells, total gas production from all six pilot wells has more than doubled. Current operations show that all wells are actively flaring gas, indicating a successful breakthrough in production.
Water Management and Future Production
Water levels in the newly operational wells are gradually decreasing as per the reservoir management plan. The reduction in water levels has led to increased gas production, although these flows are classified as “pre desorption” and not yet at commercial levels. TMK Energy anticipates that achieving the desired water levels across all wells will enable the necessary pressure drop for critical desorption, expected in late Q1 or early Q2 2025.
Executive Comments
Dougal Ferguson, Chief Executive Officer of TMK Energy, expressed his satisfaction with the progress, stating, “It is pleasing to see the new pilot production wells producing gas which occurred at a time broadly in line, if not slightly ahead of our expected timeframe.” He added that the increased production will benefit the overall project and its stakeholders.
Motley Fool contributor Abbie Stokes has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
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