PriceSensitive

TMK Energy (ASX:TMK) and Talon Energy (ASX:TPD) complete drilling at Lucky Fox-3, Mongolia

ASX News, Energy
ASX:TMK      MCAP $18.65M
30 May 2023 15:30 (AEDT)

TMK Energy (ASX:TMK) Aerial view drilling operations at Lucky Fox - 3, the final well at the maiden Gurvantes XXXV Coal Seam Gas Pilot Well Program. Source: TMK Energy

TMK Energy (TMK) has completed drilling at its Lucky Fox-3 well, completing the drilling phase at its Gurvantes XXXV CSG project in Mongolia.

The company’s final well intersected 68 metres of gassy coal, marking the thickest intersection of the three pilot production wells.

TMK reported all three wells were drilled on time, safely and within budget.

TMK Chief Executive Officer Brendan Stats said the drilling component of its program was a “tremendous” success.

“Intersecting over 60 metres of gassy coal in each well, which is exceptionally thick for a CSG project, demonstrates one of the unique qualities of the Gurvantes project and bodes well for the upcoming production testing,” He said.

“I am extremely pleased with the results to date and look forward to the final stages of the pilot well program being completed over the coming weeks prior to turning the pumps on and commencing the dewatering process.”

As a result, the major drilling rig is being removed from the site as the company prepares to install pumps and remaining surface facilities before the commencement of production testing – aimed for early July.

TMK announced it would then commission the wells, and then the dewatering process will begin, with the first gas breakthrough planned for within one or two months after the wells are placed on pump.

TMK shares were up 7.14 per cent and trading at 1.5 cents at 3:30 pm AEST, while shares in TPD were down 3.03 per cent and trading at 16 cents at the same time.

Related News