TMK Energy has completed its seventh and final pilot production well at its giant Gurvantes XXXV coal seam gas project in Mongolia’s South Gobi Basin.
The company says it is now poised to bring all seven wells to optimal production rates in the Lucky Fox area by the end of August, accelerating its reservoir depressurisation efforts to unlock final commercial gas flows at the pilot production area.
The Lucky Fox 7 (LF-07) well is currently undergoing final commissioning and production is expected to commence in the coming days.
The company has utilised its onsite resources to perform essential maintenance on the neighbouring LF-06 well, which involved cleaning the downhole pump and clearing fill to prevent future interruptions at fully depressured commercial flows. Production at LF-06 is now reinstated.
‘With seven pilot production wells online, we hope and expect to soon see all the hard work and capital investment that has been made bearing fruit.’
TMK Energy chief executive officer Dougal Ferguson
All seven active wells at the Lucky Fox Pilot project now have operational redundancy, meaning that all capital costs are accounted for and the reservoir will only require maintenance to manage production.
Commissioning LF-07 will provide TMK with critical data on reservoir pressure reduction at its location, which is about the same distance from the company’s LF-01, LF-02 and LF-05 wells. The desorption pressure must be consistent across the pilot reservoir area to return a smooth commercial gas flow following dewatering.
TMK will now shift its focus to operational efficiency and strategic partnerships over its mammoth project. The company is looking for project partners to co-fund the next phase of development at Gurvantes XXXV, 50 kilometres from China’s Shivee Khuren border, to streamline logistics and enhance cost-effectiveness.
TMK Energy chief executive officer Dougal Ferguson said: “With the drilling operations phase now complete, there is no further major capital expenditure planned at the Pilot Well project in the short to medium term. With seven pilot production wells online, we hope and expect to soon see all the hard work and capital investment that has been made bearing fruit. All the data continues to point to a positive outcome being achieved in the coming months, with reservoir pressures continuing to reduce towards the target critical desorption pressure.”
Spanning a gargantuan 8400 square kilometres, Gurvantes XXXV hosts Mongolia’s largest 2C contingent resource of 1.2 trillion cubic feet of natural gas and a prospective resource of 5300 billion cubic feet.
The project offers massive strategic value to Mongolia, as the largely coal-dominated country accelerates its transition to cleaner energy. TMK’s project is a central pillar to meeting the nation’s domestic demand.
The company is simultaneously tapping into northern China’s robust energy infrastructure. It recently entered a strategic alliance with Beijing-based J-Energy to enhance the project’s technical and logistical capabilities towards full commercialisation.
With all seven wells set to reach optimal production by the end of the month, TMK has cleared the final hurdle to demonstrate commercial viability at Gurvantes XXXV. It is now prioritising strategic, high-quality partnerships to establish itself as a dependable natural gas supplier for Mongolia’s domestic market and the region’s energy network.

Published Date:2025-08-21