Australia’s TMK Energy has announced that first gas has flowed to the surface and flared from the Lucky Fox -1 pilot well in the Gurvantes XXXV CSG Project in Mongolia.

The well was flowed for around three hours, giving crucial information and showcasing the feasibility of extracting gas from the coal seams.

With a 67% stake, TMK is the operator of the project and the remaining 33% stake is held by Talon Energy.

The 8,400km² Gurvantes XXXV Coal Seam Gas Project is located in what is claimed to be one of the world’s most promising coal seam gas basins.

The Chinese-Mongolian border is less than 20km from Gurvantes, which is also close to a vast gas transmission and distribution network in northern China.

Talon Energy managing director and CEO Colby Hauser said: “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.”

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Since commissioning around a week ago, all three production wells at the project are fully operational and are currently producing roughly 500 barrels of water per day.

TMK Energy CEO Brendan Stats said: “The early signs we are seeing from the performance of the three pilot wells is in line with our reservoir modelling work and bodes well for the extended production test. The good water rates combined with the decreasing fluid levels in each of the wells is very encouraging.

“The flaring of the gas for over three hours proves there is gas in the system that can be and is flowing to surface, and we now aim to demonstrate that gas can be produced at a sustained economic rate as we proceed with the extended production test.”