TMK Energy Limited (ASX: TMK) has announced the signing of a drilling contract with Major Drilling Group, a Canadian-listed international drilling company. TMK Energy is focused on gas exploration and production, aiming to develop the Gurvantes XXXV Coal Seam Gas (CSG) Project located in the South Gobi Basin of Mongolia. The contract will see Major Drilling Group undertake the drilling and completion of the LF-07 production well at the Pilot Well Project.
The LF-07 well is strategically located up-dip from existing wells, positioning it for early gas production. The company plans to use a larger, more powerful TXD200 drilling rig equipped with an advanced mud system for the first time. TMK Energy anticipates the LF-07 well to ‘spud’ in the second half of July, following Mongolia’s Naadam festival.
According to TMK Energy’s Chief Executive Officer, Dougal Ferguson, the company is pleased to continue its working relationship with Major Drilling. He stated that Major has consistently demonstrated its ability to execute drilling programs safely, efficiently, and cost-effectively. LF-07 is expected to be the final pilot production well in the current Lucky Fox pilot well complex, marking a milestone for the company upon completion of its drilling.
In addition to the LF-07 well, TMK Energy’s 2025 drilling program includes up to five exploration wells in an area approximately 60 km east of Nariin Sukhait. The company says this program meets the minimum work program commitment for 2025 under its Production Sharing Contract, as it seeks to prove commercial gas flows can be achieved from the upper coal seam.
