TMK Energy Limited (ASX:TMK) Reports Successful Well Completions
Operational Achievements
TMK Energy Limited (ASX:TMK) successfully drilled, completed, and commissioned three additional pilot production wells (LF-04, LF-05, and LF-06) during the quarter ending 31 December 2024. This significant milestone was achieved safely, on time, and on budget, enhancing the production capacity at its Gurvantes XXXV Coal Seam Gas Project. All six pilot wells are now producing gas, exhibiting promising early indicators of performance and effective reservoir interference between existing and new wells.
Early Commercialisation Efforts
The Company executed an early commercialisation agreement with Jens Energie LLC. This agreement enables the beneficial utilisation of gas produced from the pilot wells for power generation, as TMK aims to formalise its position in the burgeoning Mongolian Coal Seam Gas industry. The binding Memorandum of Understanding stipulates that TMK must demonstrate production of at least 5,000m³ of gas per day by 30 June 2025.
Financial Overview and Future Outlook
During the quarter, TMK Energy raised approximately $4.75 million through placements and an entitlements issue, primarily to support the completion of the 2024 work program and sustain operational capital. CEO Dougal Ferguson highlighted the completion of the drilling campaign as a transformative step for the project, positioning TMK to demonstrate commercial gas flows from Mongolian coal seams.
Ferguson stated, “The Company is well positioned to be the first to demonstrate that commercial gas flows can be produced from coal seams in Mongolia. We continue to remain razor focused on delivery of a commercial outcome.”
Conclusion
TMK Energy remains focused on improving operational efficiencies and gearing up for growth in 2025. The successful commissioning of additional pilot wells marks a pivotal advancement in the Company’s quest to enhance gas production capabilities in the region.
Motley Fool contributor Abbie Stokes has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
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