TMK Energy Limited has intersected 54 metres of net coal at its Gurvantes XXXV coal seam gas (CSG) project in Mongolia’s South Gobi Basin, mirroring the thickness of nearby pilot wells and reinforcing the project’s consistency and potential.
The results of the 420m-deep Lucky Fox LF-07 pilot production were also well-aligned with the company’s expectations.
“Net coal” is the cumulative thickness of coal seams intersected by a CSG well, excluding non-coal layers such as shale or sandstone within the drilled interval.
It represents the effective coal thickness available for gas extraction and is typically measured in feet or metres.
‘This is yet another successful outcome for our Pilot Project, with the latest pilot production well intersecting the upper coal seam at the prognosed depth and expected thickness.’
TMK Energy CEO Mr Dougal Ferguson
Drilled under a fixed-cost contract with Major Drilling’s advanced TDX200 rig - deployed in Mongolia for the first time - the operation was completed safely and efficiently.
The rig is now demobilising and TMK will soon install downhole pumps and connect the LF-07 well to production facilities, with commissioning expected in the coming weeks.
The latest milestone caps an active and productive year for TMK, with four new pilot wells drilled that significantly expand the Lucky Fox field’s capacity and output. LF-07 is set to enhance depressurisation efforts at the project, which is a critical step toward achieving commercial gas flow rates.
TMK Energy CEO Dougal Ferguson said: “This is yet another successful outcome for our Pilot Project, with the latest pilot production well intersecting the upper coal seam at the prognosed depth and expected thickness. With the well securely behind casing, the next stage is installation of the down hole pump and associated equipment followed by commissioning activities which will be undertaken over the coming weeks, after which the well can be placed on production.”
Gurvantes XXXV spans 8400 square kilometres and contains Mongolia’s largest 2C contingent resource of 1.2 trillion cubic feet (TCF) of natural gas. The project’s prospective resource of 5300 billion cubic feet (BCF) positions TMK as a key player in Mongolia’s transition to cleaner energy.
The LF-07 success follows closely on the heels of TMK’s strategic alliance with Beijing-based J-Energy, announced earlier this week.
The new partnership taps into J-Energy’s extensive expertise, led by former Shell China professionals, to advance the Gurvantes project.
J-Energy will provide geological, engineering and project development support to craft a comprehensive field development plan.
The alliance also streamlines logistics, leveraging the project’s proximity - via less than 50 kilometres of sealed roads - to the Shivee Khuren border crossing with China, which greatly facilitates equipment and service procurement.
J-Energy’s proven track record with ASX-listed firms such as Sino Gas & Energy Holdings bolsters confidence in their ability to deliver high-value outcomes.
Furthermore, J-Energy will help TMK recruit financial or project partners and earn a success fee - payable in cash or equity - if investments are secured.
The collaboration enhances TMK’s ability to scale operations and attract high-calibre partners, capitalising on Mongolia’s push for a domestic gas industry and China’s robust energy market demand.
The latest capped and completed well, together with the new strategic alliance, signals a bright future for TMK as it moves closer to commercial production and boosts its role in delivering cleaner energy solutions for the region.
The company looks set to accelerate Mongolia’s coal seam gas revolution, paving the way for long-term sustainable energy growth.

Published Date:2025-08-08