TMK Locks in Major Drilling Contract for LF-07 Well, Eyes 2026 Horizontal Drilling
TMK Energy is set to drill a new pilot well at its Gurvantes XXXV Coal Seam Gas Project and is making headway in securing strategic partnerships, particularly with Chinese companies experienced in horizontal drilling and fracking.
- Drilling contract finalized with Major Drilling for pilot well LF-07
- Advanced mud system implemented following Independent Technical Review
- Strong interest from Chinese firms in project partnering
- Gas production steady from existing pilot wells
- Efforts underway to restore production at well LF-05
Drilling Momentum Builds at Gurvantes XXXV
TMK Energy Limited has confirmed the finalisation of a drilling contract with Major Drilling for an additional pilot production well, LF-07, at its Gurvantes XXXV Coal Seam Gas (CSG) Project in Mongolia. Drilling is expected to commence in the second half of July 2025, marking a significant step in the company’s ongoing pilot program.
The company is deploying the TXD200 rig, a larger and more powerful unit than previously used, under a fixed-price turnkey contract. This approach mitigates the risk of cost overruns, a prudent move given the technical challenges of coal seam gas extraction. Moreover, TMK is incorporating recommendations from a recent Independent Technical Review, including an advanced mud system designed to protect the reservoir during drilling operations.
Strategic Partnerships Gain Traction
Beyond drilling, TMK is actively pursuing project partnerships, with a particular focus on Chinese firms that bring expertise in horizontal drilling and hydraulic fracturing, techniques critical for unlocking the full potential of coal seam gas resources. A recent visit to Mongolia and China generated strong interest from several parties with proven track records in the sector.
CEO Dougal Ferguson highlighted the strategic advantages of the Gurvantes XXXV Project, including its proximity to a key China-Mongolia border crossing and the Mongolian government’s commitment to developing its gas industry. The company’s engagement with Chinese partners is a logical step given their technical capabilities and the enormous energy demand in China.
Production and Operational Updates
Gas production from the existing pilot well complex continues in line with expectations, maintaining steady output. Meanwhile, efforts to bring well LF-05 back into production are ongoing, with additional equipment now sourced to support this objective. The company plans to attempt reactivation of LF-05 before the LF-07 drilling begins, leveraging the presence of both the workover rig and the TXD200 drilling rig on site.
Looking ahead, LF-07 is likely to be the last vertical pilot well drilled in the current phase, as TMK shifts focus toward designing a deviated or horizontal drilling and fracking program for 2026. This transition aligns with the company’s broader strategy to enhance resource recovery and project economics.
Outlook
TMK Energy’s methodical progress in drilling and strategic partnering underscores its commitment to advancing the Gurvantes XXXV Project toward commercial viability. The combination of technical improvements, steady production, and growing interest from experienced partners positions the company well to capitalize on the burgeoning coal seam gas market in the region.
Bottom Line?
As TMK prepares to drill LF-07 and deepen partnerships, the next year will be pivotal in transforming Gurvantes XXXV from pilot to production scale.
Questions in the middle?
- Which Chinese partners will TMK ultimately formalize agreements with, and on what terms?
- How will the advanced mud system impact drilling efficiency and reservoir health in practice?
- What is the timeline and expected scale for the planned horizontal drilling and fracking program in 2026?
