TMK Energy Limited (ASX:TMK) announces commencement of drilling program

TMK Energy Limited (ASX:TMK) has commenced drilling the first of up to three additional coal seam gas pilot production wells at the Lucky Fox Pilot Well Project. The first well, LF-05, began drilling operations and is currently preparing to drill the surface hole section. Each pilot production well is expected to take approximately seven to ten days to drill. The company plans to commission the wells and place them on production immediately following the completion of the drilling program.

Executive Commentary on Gurvantes XXXV pilot well program

We're excited to announce the commencement of the highly anticipated 2024 pilot well drilling program. This work program, including the installation of Distributed Temperature Sensing (DTS) technology, is the next crucial step towards demonstrating that commercially significant gas flows can be achieved from TMK's discovered and proven gas resource, within our 100% owned Gurvantes XXXV license area. We are proud to be one of, if not the most advanced, focussed and active companies in the nascent but highly prospective Mongolian coal seam gas sector and look forward to being able to deliver a commercially significant outcome in the coming months following completion of this latest drilling program. At the same time, we are pleased to provide all existing shareholders with an opportunity to participate in the current funding round through an Entitlements Issue on the same terms as the Placement (refer ASX announcement dated 1 October 2024) and for all our existing and loyal shareholders to be able to maintain or increase their leverage to a successful outcome from this drilling program.

Summary of TMK Energy's drilling program announcement

TMK Energy Limited (ASX:TMK) has commenced the drilling of up to three additional coal seam gas pilot production wells at the Lucky Fox Pilot Well Project. The company aims to prove that commercial rates of gas can be produced from the upper coal seam at this location. The drilling program, expected to be completed in the next four to six weeks, is anticipated to provide the extra pumping capacity required to reach the critical gas desorption pressure faster and accelerate a material uplift in gas production rates from the Pilot Well complex within a much shorter timeframe. TMK's interim Chief Executive Officer expressed excitement about the program and the company's position in the Mongolian coal seam gas sector. The company also announced an opportunity for existing shareholders to participate in the current funding round through an Entitlements Issue. TMK Energy is focused on the responsible development of the Gurvantes XXXV Project and aims to establish itself as a key supplier of cleaner energy to support Mongolia's development and address domestic energy security, reliability, and independence. The Gurvantes Project XXXV is strategically located close to the Chinese border and existing gas infrastructure in northern China, presenting a significant advantage to supplying the world's largest energy market.