How TMK’s LF-07 Well Could Unlock Mongolia’s Vast Coal Seam Gas Potential

Successful Drilling Marks Key Milestone

TMK Energy Limited has announced the successful completion of drilling and casing the LF-07 pilot production well at its Gurvantes XXXV Coal Seam Gas (CSG) Project in Mongolia. The well reached a total depth of 420 metres and intersected approximately 54 metres of net coal, aligning with geological expectations and previous pilot wells in the area.

This achievement comes after a rigorous 12-month drilling campaign during which TMK drilled four additional pilot wells, effectively doubling the production capacity of the pilot project. The use of Major Drilling’s TXD200 rig, a first for Mongolia, contributed to the efficient and safe completion of the operation under a fixed-cost contract, underscoring TMK’s commitment to operational discipline and cost control.

Next Steps Toward Production

With the well securely cased, TMK is preparing to install the downhole pump and associated equipment, a critical step before connecting LF-07 to the production facilities. Final commissioning activities are scheduled over the coming weeks, after which the well will be placed into production. This progression is expected to enhance the overall output of the Gurvantes project and validate the resource potential of the South Gobi Desert coal seams.

CEO Dougal Ferguson praised the team and contractors for their stellar performance, highlighting the safe, on-time, and on-budget delivery of multiple pilot wells. He emphasized the significance of these developments in unlocking a substantial gas resource, which could have meaningful implications for TMK’s growth trajectory and Mongolia’s energy landscape.

Strategic Implications and Market Outlook

The successful drilling and imminent commissioning of LF-07 represent a tangible step forward in TMK’s strategy to commercialize coal seam gas resources in a region with growing energy demand. While the announcement does not specify production volumes or timelines beyond commissioning, the doubling of pilot well capacity signals increasing operational momentum. Investors will be watching closely for production data and further updates on project economics as TMK moves toward full-scale development.

Overall, the LF-07 well’s results reinforce confidence in the Gurvantes project’s geology and TMK’s execution capabilities, positioning the company well within the competitive energy sector in Mongolia.