TMK Energy (ASX:TMK) has signed a drilling contract with Canadian-listed Major Drilling Group.
The contract entails drilling and completing up to three additional production wells at the Lucky Fox Pilot Well Project within the next two weeks.
Preparations at the site have been fully completed, including the inspection of drilling pads and sumps by Major.
Equipment necessary for the drilling operation, such as casing, wellheads, production tubing, and pumps, has been procured and is ready on location.
The drilling rig is currently being mobilised from Ulaanbaatar to the Gurvantes XXXV site and is expected to arrive within the week.
This follows the success of Major's earlier engagement with TMK in 2023, where they delivered on time and under budget.
The new drilling operation is planned within the existing Narrin Sukhait area of the pilot well program.
The initiative aims to enhance pumping capacity and accelerate gas production rates by reaching the critical desorption pressures more quickly.
The project will also incorporate Distributed Temperature Sensing technology to gather valuable data on the productivity of different zones within the upper coal seam.
"We'd like to thank all our shareholders and other stakeholders, including Major, for their patience and for working with us to get us in position where we are ready to commence the 2024 drilling program," stated Dougal Ferguson, TMK Energy’s interim CEO.
"Signing of this drilling contract is an important step for the company and the Gurvantes XXXV Project, which has transformed from an exploration concept three years ago, into a potential gas-producing project of great significance to both TMK and Mongolia," Ferguson added.
Ferguson further highlighted that the project has already seen significant advancements, despite encountering delays related to environmental approvals and logistical challenges.
The additional wells are expected to provide a material uplift in gas production within a relatively short timeframe.
At the time of reporting, TMK Energy’s share price was $0.003.