Talon Energy Ltd presented an update on the Gurvantes XXXV CSG Project’s pilot production well drilling program in Mongolia‘s South Gobi Basin.
Lucky Fox-1 (LF-01) was spudded on 12 April and achieved complete depth on April 26th, having drilled to 375m as intended. The well encountered 60m of gassy coal in the predicted production range of 151m to 375m and was drilled safely, on schedule, and on budget by Major Drilling. The drill rig is presently being deployed to the Lucky Fox-2 (LF-02) well site, which is about 200 metres from LF-01, in preparation for the spudding of the Pilot Well Program’s second pilot production well.
The Pilot Well Program entails drilling and finishing three distinct production wells spaced roughly 200 metres apart, all centred around the Snow Leopard-2 well completed last year. The last two producing wells are projected to take around five weeks to drill. After the drilling is finished, downhole pumps will be constructed and the surface facilities will be linked, which should take around four weeks. The dewatering pumps will subsequently be turned on. The dewatering process will then begin in a regulated way, with the first gas breakthrough expected within one to two months from being placed on production.
Talon is largely funding the Pilot Well Program as part of the company’s tiered farm-in process for the Gurvantes XXXV CSG Project. Talon chose to enter Stage 2 of the Farm-in Agreement in early December 2022, paying the first US$3.15 million of the estimated US$3.5 million for the production drilling and testing program, with TMK paying their proportionate share of additional costs above US$3.15 million.
“We are very pleased to report that the first of our three pilot production wells has been drilled safely, on time and on budget. Having penetrated 60m of gassy net coal is an outstanding result for the first well and bodes well for the remaining two wells and the subsequent production test to see if the project can deliver gas at commercial rates,” Talon Energy Managing Director and Chief Executive Officer Colby Hauser said.
