TMK Energy has commenced drilling its seventh pilot well at the Gurvantes XXXV Coal Seam Gas Project, reporting positive reservoir pressure tests and advancing partnerships to fast-track development.
- LF-07 pilot well drilling commenced with Major Drilling Group
- All existing wells back in production after remediation
- Pressure build-up tests confirm ongoing reservoir depressurisation
- Second Independent Technical Review endorses project progress
- Strategic partnerships and funding discussions advanced, focusing on China
Drilling Momentum Builds
TMK Energy Limited has taken a significant step forward in its Gurvantes XXXV Coal Seam Gas (CSG) Project with the commencement of drilling the LF-07 pilot production well on 27 July 2025. The contract was awarded to Major Drilling Group, a seasoned international operator responsible for the previous six pilot wells. This new well is strategically positioned to complement the existing pilot well network, aiming to enhance gas production and refine reservoir understanding.
The LF-07 well is expected not only to contribute additional production capacity but also to provide critical data on reservoir pressure trends, helping to confirm whether the depressurisation observed in nearby wells extends across the pilot area. This drilling activity aligns with TMK’s broader strategy to prove commercial gas flows from the upper coal seam and advance the project towards full-scale development.
Positive Reservoir Performance and Technical Validation
During the quarter, TMK successfully remediated the LF-05 well, bringing all six existing production wells back online. Pressure build-up tests conducted at LF-01, LF-02, and LF-03 have shown consistent and encouraging declines in reservoir pressure, a key indicator of effective gas desorption and flow potential. Notably, LF-02 demonstrated the ability to produce gas unassisted during a 10-day shut-in period, suggesting parts of the reservoir have reached critical desorption pressure.
These operational results were further validated by a second Independent Technical Review conducted by Cipher Consulting Pty Ltd. The review concluded that the progress of the Nariin Sukhait pilot well program is “considerable and encouraging,” endorsing the project’s management and technical approach. The review also supported the decision to drill LF-07 and recommended several technical improvements, some of which have already been incorporated into the current drilling campaign.
Strategic Partnerships and Corporate Developments
TMK is actively pursuing technical and commercial partnerships to secure project funding and accelerate field development. A recent visit to Beijing yielded productive discussions with potential partners, reflecting strong interest driven by China’s growing natural gas demand and the project’s strategic location. These partnerships are expected to be formalised in the near term, potentially unlocking new capital and expertise.
On the corporate front, TMK welcomed industry veteran Glenn Corrie to its Board as a non-executive director. Corrie brings over 25 years of energy sector experience, including leadership roles in companies with significant Chinese gas interests. His appointment is timely as TMK transitions from appraisal to commercialisation phases.
Additionally, TMK completed the sale of its legacy Talisman Deeps Prospect, removing future financial obligations related to that asset and allowing the company to focus resources on Gurvantes XXXV.
Financial Position and Outlook
Financially, TMK reported net cash inflows from operating activities and maintained a cash balance of approximately A$1.7 million at quarter-end. The company continues to invest in exploration and development while managing costs prudently. With the commencement of LF-07 drilling and ongoing partnership discussions, TMK appears well-positioned to sustain its operations and advance its development goals over the coming quarters.
Bottom Line?
As TMK drills deeper and forges new partnerships, the next milestones will be critical in proving commercial viability and attracting the funding needed for full-scale development.
Questions in the middle?
- Will the LF-07 well confirm sustained reservoir depressurisation and increased gas flows?
- How soon will TMK formalise partnerships and secure funding to accelerate development?
- What impact will Glenn Corrie’s industry connections have on TMK’s strategic direction?