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TMK Energy (ASX:TMK) has this week contracted Canadian-listed Major Drilling Group to complete the LF-07 Production Well at the company’s Gurvantes XXXV Coal Seam Gas Project in the South Gobi Basin in Mongolia.
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The LF-07 production well has been a standout among TMK’s plans for some time now because it’s up-dip from existing wells; a great spot to help gas production get started early.
Expectations are that the well will be “spudded” by late July – soon after Mongolia’s Naadam festival – with Major using the work to debut its “larger, more powerful” TXD200 drilling rig equipped with an advanced mud system.
The Canadian contractors worked on all six other pilot wells at Gurvantes, and TMK Energy’s CEO, Dougal Ferguson, said it was great to be “continuing our excellent working relationship” with this July drilling.
“Major has continually demonstrated it can execute our drilling programs safely, efficiently, and cost-effectively,” Mr Ferguson said of the company’s partners.
These plans around LF-07 and its pilot well mark a ‘next phase’ for TMK Energy in the Lucky Fox pilot well complex, too, with the Australian gas explorer moving on from pilots; it is now preparing to drill as many as five exploration wells in the “highly prospective” area around 60 kilometres east of Nariin Sukhait.
Between the pilot and exploration drilling blueprint TMK has laid out, the company will easily meet its minimum 2025 work program commitments.
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In other positive news from Mongolia, too, TMK says recent pressure build-up tests on wells LF-01, LF-02 and LF-03 have shown that the well-field has significantly reduced the reservoir pressure over the past two years.
Trading today has seen TMK leap +25% on the drilling news, to 0.3cps.
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