If a comparable pressure drop is reflected in LF-07 tests, it will support inferred continuity of gas flow towards the favourable up-dip position, making LF-07 a likely early gas producer.
TMK Energy chief executive officer Mr Dougal Ferguson said: โWe are pleased to continue our excellent working relationship with Major and its Mongolian team with the signing of this latest drilling contract. Major has continually demonstrated that it can execute our drilling programs safely, efficiently and cost-effectively, and is one of our key service providers in the country.โ
In the current pilot well project, the vertical production wells are the companyโs primary focus as it seeks to prove that commercial gas flows can be achieved from the upper coal seam.
After completing LF-07, the company plans to drill up to five exploration wells in a highly prospective area, about 60 kilometres east of Nariin Sukhait.
The 2025 exploration drilling program is considered relatively low-cost but could have a big impact on building the companyโs significant 2C contingent resources in the region.
Together with LF-07, the proposed drilling program meets the minimum 2025 work program commitment under TMKโs production sharing contract.
Management says finishing its LF-07 drilling will mark a significant milestone for TMK.
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