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- Talon Energy (TPD) and TMK Energy (TMK) intersect 60 metres of gassy coal at the Lucky Fox-1 pilot production well within the Gurvantes XXXV CSG project in Mongolia
- The well intersected the gassy coal in the production interval, which was drilled safely, on time and within budget
- The drill rig is now being mobilised to the site of the Lucky Fox-2 well ahead of the spudding of the second pilot production well
- The pilot well program is being primarily funded by Talon as part of a staged farm-in process
- Talon Energy shares are trading at 17 cents and TMK shares at 1.5 cents at 11:32 am AEST
Talon Energy (TPD) and TMK Energy (TMK) have intersected 60 metres of gassy coal at the Lucky Fox-1 pilot production well within the Gurvantes XXXV CSG project in the South Gobi Desert of Mongolia.
The project is held in a joint venture between the businesses, with Talon holding 33 per cent and TMK owning the remaining 67 per cent while acting as operator.
Lucky Fox-1 was spudded on April 12 and reached its total depth of 375 metres on April 26.
The well intersected 60 metres of gassy coal in the production interval and was drilled safely, on time and within budget by contractors Major Drilling.
The drill rig is now being mobilised to the site of the Lucky Fox-2 well, just 200 metres from Lucky Fox-1, ahead of the spudding of the second pilot production well.
The pilot well program will include the drilling of three individual production wells, each spaced around 200 metres apart and centred around the Snow Leopard-2 well, which was drilled last year.
The drilling of the remaining two production wells is expected to take five weeks.
Once the drilling has wrapped up, downhole pumps will be installed, and the surface facilities will be connected. After this time, dewatering pumps will be commissioned.
The pilot well program is being primarily funded by Talon as part of a staged farm-in process.
“Having penetrated 60 metres of gassy net coal is an outstanding result for the first well and bodes well for the remaining two wells and the subsequent production test to see if the project can deliver gas at commercial rates,” Talon Managing Director and CEO Colby Hauser said.
TMK Energy’s Chief Executive Officer Brendan Stats noted that following its recent $5.7 million capital raise, together with the remaining funding obligation from Talon Energy, TMK was well funded to deliver on its 2023 program.
Talon Energy shares were trading at 17 cents and TMK shares at 1.5 cents at 11:32 am AEST.
