Oil and gas explorer TMK Energy has drilled to a depth of 375m and hit about 60m of coal at the company’s first production well – Lucky Fox-1 – at its coal seam gas Gurvantes XXXV project in Mongolia’s South Gobi Basin.

After a short spell for maintenance, the company plans to quickly shift its drilling rig about 200m to the next well pad for the drilling of Lucky Fox-2. Once it has completed three pilot production wells, which should occur in about five weeks, it expects to kick off a six-month production test to demonstrate proof of concept and produce gas to surface.

Last week, TMK Energy revealed its raise of nearly USD 6 million from sophisticated and institutional investors to help accelerate and expand its exploration drilling program at its promising coal seam gas project.

Gurvantes XXXV is a joint venture with ASX-listed Talon Energy, which became involved when it signed a USD 5 million farm-out agreement with Telmen Energy in January, 2021. In February last year, TMK Energy (formerly Tamaska Oil and Gas) acquired Telmen and its 100 percent interest in the project.

TMK – which was granted a 15-year exploration licence in September, 2021 – now owns 67 percent of the Gurvantes XXXV project and Talon will take up the remaining 33 percent by primarily funding the pilot well program.