TMK Energy (ASX:TMK) Major drilling Rig on location for the Lucky-Fox-1 pilot production well.
Fox
Source: TMK Energy
The Market Online - At The Bell

Join our daily newsletter At The Bell to receive exclusive market insights

  • TMK Energy (TMK) begins its Pilot Well drilling program at its Gurvantes project in Mongolia with the spudding of the Lucky Fox-1 (LF-01) pilot production well
  • Under the Pilot Well program, TMK will drill three production wells centred around the company’s SL-02 exploration well established from maiden exploration in 2022
  • The three wells will take seven weeks to drill, after which TMK will install downhole pumps before kicking off commissioning and dewatering
  • TMK’s farm-in partner, Talon Energy (TPD), has funded the first US$3.15 million (A$4.7 million) of the US$3.5 million program
  • TMK shares are up 6.25 per cent and trading at 1.7 cents at 11:35 am AEST

TMK Energy (TMK) has kicked off its Pilot Well drilling program at its Gurvantes CSG project in Mongolia with the spudding of the Lucky Fox-1 (LF-01) pilot production well.

LF-01 began operations on April 12 following the mobilisation of a drill rig to the site, which was contracted by Major Drilling, one of the world’s largest international drilling companies.

Under the Pilot Well program, TMK will drill three individual production wells to be spaced approximately 200 metres apart and centred around the company’s maiden SL-02 exploration well, established from explorations in 2022.

“Our first exploration well (Snow Leopard-01) was drilled approximately 12 months ago, so to now be commencing our first pilot production well in such a short timeframe speaks to the quality of both the asset and the team we have in place,” TMK Chief Executive Officer Brendan Stats said.

Once drilling is completed after seven weeks, downhole pumps will be installed and surface facilities will be connected to the wells, which are expected to take four weeks from the completion of drilling.

The pilot well pumps will then undergo a dewatering process in a controlled manner, with TMK expecting its first gas breakthrough within one or two months from the start of gas production.

The Pilot Well program is primarily funded by TMKs’ farm-in partner, Talon Energy (TPD).

Talon Energy elected to enter into stage two of its farm-out agreement in early December 2022 to fund the first US$3.15 million (A$4.7 million) of the US$3.5 million Gurvantes XXV CSG project.

TMK shares were up 6.25 per cent and trading at 1.7 cents at 11:35 am AEST.

TMK by the numbers
More From The Market Online
The Market Online Video

Market Close: ASX200 falls, Woolworths slumps on CEO exit, Domino’s & WiseTech surge

The ASX200 closed down about three-quarters of a per cent. The staples sector took the biggest…
The Market Online Video

Market Update: Coles & Woolworths lead staples tumble as ASX200 slides

The ASX200 is down about point three-quarters of a per cent. The sectors are fairly split…

ASX uranium watch: 5 junior stocks with announcements out today

Anyone who reads my articles will know I've been predicting for a while we're going to…

Income Asset Management Group (ASX:IAM) awarded $160 million mandate for NFP bond holdings

Income Asset Management Group (ASX:IAM) has landed a mandate to provide execution services for $160 million…