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Highlights
- TMK Energy begins drilling at its Gurvantes XXXV project in Mongolia.
- Three pilot wells are planned under the Lucky Fox Project.
- The campaign aims to boost gas production with advanced technology and techniques.
Mongolia-based energy explorer TMK Energy (ASX:TMK) has commenced a fresh drilling campaign at its expansive Gurvantes XXXV project located in the Gobi Desert. The new phase of drilling, known as the Lucky Fox Project, is set to include up to three pilot wells, with the first well, LF-05, already underway. Drilling began on Monday, and each well is expected to take between seven to ten days to complete, with the entire campaign slated to wrap up by early November.
The objective of this campaign is to enhance gas production from the Lucky Fox area by targeting an upper coal seam known to be rich in gas. TMK Energy plans to put these wells into production immediately after drilling, aiming to significantly increase gas output in the near term. The company's technical team is utilizing conventional hydraulic fracturing methods to extract gas from coal seams, a process well-established in the area.
Interim CEO of TMK Energy, Dougal Ferguson, highlighted the company's leading position in Mongolia's emerging coal seam gas industry. He emphasized that this drilling program represents a critical step toward proving that commercial gas flows can be achieved at Gurvantes XXXV, which holds certified gas reserves.
In addition to the drilling efforts, TMK Energy has raised $1.34 million through a recent placement, which was oversubscribed. These funds are earmarked for the Lucky Fox campaign and the installation of Distributed Temperature Sensing (DTS) technology. This advanced fibre-optic solution will enable real-time monitoring of gas flow temperatures, giving geologists a clearer understanding of where to focus future drilling efforts.
The strategic location of the Gurvantes XXXV project, only 20 kilometers from China’s energy infrastructure, positions TMK Energy to potentially play a pivotal role in China’s transition from coal to gas-based energy. With China's growing focus on environmental sustainability, the development of this project aligns with broader trends in the region.
TMK Energy’s latest drilling campaign marks a significant milestone in its efforts to unlock the potential of the Gobi Desert's gas reserves, with a focus on advanced technology and strategic positioning near China’s energy network.
