TMK Commenced Production from New Pilot Wells

? Production from the three new pilot wells (LF-04, LF-05 and LF-06) has commenced with all new wells commissioned over the weekend
? All six pilot production wells (LF-01 to LF-06) now working together to accelerate the pathway to reaching the critical desorption pressure required to deliver material gas flow increases
? TMK Energy now leading the way on proving up the enormous potential of the nascent Mongolian Coal Seam Gas industry with the highest number of pilot production wells in operation at one location

TMK Energy Limited (TMK or the Company) is pleased to report that the three recently drilled pilot production wells at the Gurvantes XXXV Coal Seam Gas (CSG) Project, were commissioned and commenced production over the weekend. The wells were successfully started up on Sunday after final commissioning work was undertaken, including calibration of the SCADA system, installing heat tracing and installing the gas lines and flare stacks.

All six pilot production wells will now be carefully managed over the next 6-8 weeks in accordance with the Company’s reservoir management plan. Downhole pump speeds will be gradually increased over this period to drawdown the fluid levels in the wells to the desired level. This process is expected to accelerate the pathway towards reaching the critical desorption pressure at this location, quicker than would otherwise have been possible without the additional three recently drilled pilot wells.

Upon reaching the critical desorption pressure, it is expected that gas flow rates will materially increase enabling a clearer understanding of the overall production profile of the wells allowing detailed feasibility studies and field development plans to be commenced.

Mr Dougal Ferguson, TMK Energy’s Chief Executive Officer commented:
“TMK has delivered its 2024 drilling program safely, on budget and without incident and that is a testament to all involved. Operating a program of this size and complexity in a foreign jurisdiction is no small task and all our employees, contractors and stakeholders should be very proud of this significant achievement.

With six closely spaced pilot production wells now online, we have doubled the production capacity at this location within the field and given the Project every chance of demonstrating that commercial gas rates can be achieved from these very thick coal seams.

We believe we now have all the tools in place to deliver on our objective of being the first company to produce commercial rates of gas from the enormous coal seam gas resources that exist in Mongolia, and we look forward to continuing to report positive outcomes for shareholders in the coming months.”