TMK has a winning hand with Lucky Fox-1 intersecting over 60m of gassy coal

Drilling at TMK Energy’s first production well at the Gurvantes XXXV Project in Mongolia’s south Gobi Desert, Lucky Fox-1, has been completed safely, on time and on budget to a depth of 375m.

TMK Energy (ASX:TMK) says this is a great achievement for both Major Drilling – the contractor carrying out the drilling work for the pilot well program – and the TMK team.

Intersecting a very thick, very gassy, coal seam of 60m in the production interval, at relatively shallow depth, is a unique feature of this CSG Project that bodes well for the upcoming production test, TMK CEO Brendan Stats explains.

“With the company’s recent successful $5.7 million capital raising together with the remaining funding obligation from Talon Energy, the company is well funded to deliver on its 2023 program.

“This includes not only the Lucky Fox pilot well program, but also an extensive exploration program which aims to deliver further resource upgrades on what is quickly becoming a world class CSG province.”

What’s next?

The drilling rig will undergo routine maintenance before shortly being mobilised to the site of the Lucky Fox – 2 (LF-02) well located approximately 200 metres from LF-01, in preparation for spudding of the second pilot production well in the pilot well program.

On successful drilling and completion of the three pilot production wells, a six-month production test will commence to demonstrate proof of concept and produce gas to surface.

The pilot well pumps will then be commissioned, and the dewatering process will commence in a controlled manner with first gas breakthrough expected within one or two months from being placed on production.

Ideally placed to satisfy Mongolian and Chinese energy requirements

The Gurvantes XXXV Project (TMK Energy 67%, Talon Energy 33%) covers an area of 8,400km2 and is in what is considered one of the most prospective coal seam gas basins globally.

Gurvantes is less than 20km from the Chinese-Mongolian border and close to the extensive Northern China gas transmission and distribution network and is proximate to several large-scale mining operations with high energy needs.

The project is therefore ideally placed to satisfy both local Mongolian, as well as Chinese, energy requirements.

This article was developed in collaboration with TMK Energy, a Stockhead advertiser at the time of publishing.

This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.