Investors have demonstrated their support for the expansion and acceleration of exploration drilling at TMK’s Gurvantes XXXV coal seam gas project by backing its $5.7m placement.

New and existing sophisticated and institutional investors made firm commitments to subscribe for more than 393 million shares priced at 0.0145 each – a 17.8% discount to the 15-day volume weighted average price – offered under the placement.

The placement includes the issue of one free attaching option exercisable at 0.025 expiring 30 April 2026 for every two shares subscribed.

TMK Energy (ASX:TMK) chief executive officer Brendan Stats welcomed the support from new and existing shareholders, noting that the proceeds will allow the company to embark on its 2023 exploration program.

“The 2023 exploration program will target areas with known coal to the east of the central Nariin Sukhait area, which was the focus of the company’s highly successful initial exploration drilling program in 2022, and which delivered a gross 1.2TCF contingent resource (2C) for the project,” he added.

“The exploration program is planned to commence in early Q3 of 2023 after the completion of the drilling of the three production wells currently being drilled in the Nariin Sukhait Pilot Well Program.”

Pilot well program underway

Drilling of the first of three pilot production wells – Lucky Fox-1 – is currently underway at the project in Mongolia’s South Gobi Basin.

The drilling work is expected to take about seven weeks and will be followed by the installation of down pumps and surface facilities.

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

 

 

 

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.

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