TMK Energy Limited (“TMK” or the “Company”) is pleased to provide an update on the current Pilot Well Drilling Program at the Gurvantes XXXV CSG Project (TMK 67%, Talon Energy 33%) in the South Gobi Basin of Mongolia.
Mr Brendan Stats, TMK Energy’s Chief Executive Officer commented:
“With the third and final well in our Pilot Well Drilling Program now underway, we are on track to complete all the drilling activities by around the end of this month.
We now have two wells secured and ready for pump installation and tie into our production facilities which is scheduled to occur during June, before full commissioning in July. Lucky Fox - 1 and Lucky Fox - 2 both intersected approximately 60 metres of gassy coal as prognosed which proves our geological model is sound and bodes well for the six-month production test that will follow in the second half of this year.”
Lucky Fox – 3 (LF-03) commenced drilling late last night and is the final well in the three pilot production wells being undertaken in the Nariin Sukhait area within the Gurvantes XXXV CSG Project. LF-03 is located approximately 175 metres southwest of LF-02 and is expected to take approximately two weeks to drill.
The Pilot Well Program is being primarily funded by Talon Energy, TMK’s partner in the Gurvantes XXXV Project. Talon elected to enter Stage 2 of the Farmout Agreement in early December 2022 and is paying the first US$3.15 million towards what is budgeted to be approximately US$3.5 million, with TMK and Talon paying their proportionate share of further costs over and above US$3.15 million.
ABOUT THE GURVANTES XXXV PROJECT
The Gurvantes XXXV Project (TMK Energy 67%, Talon Energy 33%) covers an area of 8,400km2 and is in what is considered one of the most prospective coal seam gas basins globally. Gurvantes is situated less than 20km from the Chinese-Mongolian border and close to the extensive Northern China gas transmission and distribution network. It is also proximate to several large-scale mining operations with high energy needs. Gurvantes is therefore ideally placed to satisfy both local Mongolian, as well as Chinese, energy requirements.