TMK Energy has started drilling a seventh production well to increase capacity at its Lucky Fox Pilot Well project in southern Mongolia, using a larger, more powerful TXD200 rig for the first time in the country.
Canadian firm Major Drilling is drilling the LF-07 pilot production well to further reduce the reservoir pressure towards the targeted critical desorption pressure. The additional well should boost the depressurisation sought at the project and bump up total production capacity.
TMK Energy has started drilling a seventh pilot production well at its Lucky Fox coal seam gas project in southern Mongolia, using Major Drilling’s larger TDX200 drill rig to complete the work program.
TMK Energy has started drilling a seventh pilot production well at its Lucky Fox coal seam gas project in southern Mongolia, using Major Drilling’s larger TDX200 drill rig to complete the work program.
A recent independent technical review recommended management utilise the larger TDX200 rig, which also has a more advanced mud system to drive drilling efficiencies.
The new well is being completed on a fixed cost “turnkey” contract with Major Drilling to minimise TMK’s exposure to cost overruns.
The Canadian-based drilling firm has drilled all six previous pilot wells at the project site.
The Lucky Fox project, which is part of TMK’s wider Gurvantes XXXV coal seam gas project, has progressively lifted gas output this year, setting several monthly records for gas volume produced.
The company expects to shortly produce commercial rates of gas across its 60-square-kilometre project in the Nariin Sukhait area of Mongolia’s vast countryside.
TMK Energy chief executive officer Dougal Ferguson said: “We have commenced drilling of our seventh pilot production well in the Lucky Fox Pilot Well project, which is another positive step forward for the project… With all six existing wells on production, including LF-05, which has recently been successfully remediated, we look forward to bringing LF-07 on production and continuing to grow our gas production capacity.”
Management has recently had pressure build-up tests conducted at its LF-01, LF-02 and LF-03 wells, encouragingly demonstrating significant reductions in the reservoir pressure within the past two years and providing an overall improvement in reservoir depressurisation.
The first gas slugs, large high-pressure gas bubbles, which have formed in its Lucky Fox wells LF-04 and LF-06, imply that the pilot well program is heading towards critical desorption pressure.
One of the company’s key objectives this year is to reduce the reservoir pressure below the critical desorption pressure, with gas rates anticipated to increase substantially when the objective is achieved.
That’s why the company has drilled three new production wells this year - LF-07 will be the fourth.
’… we look forward to bringing LF-07 on production and continuing to grow our gas production capacity.”
TMK Energy chief executive officer Dougal Ferguson
The latest well will help meet the company’s licence commitment for further pilot wells this year at its Gurvantes XXXV project and boost the production capacity at the complex.
TMK believes the additional well will help provide the extra pumping capacity needed to quickly reach the critical desorption pressures for the project to deliver an immediate uplift in gas production.
After completing LF-07, the company plans to drill up to five exploration wells in a highly prospective area, about 60km east of Nariin Sukhait.
The 2025 exploration drilling program is considered relatively low-cost but could have a big impact on building the company’s significant 2C contingent resources in the region.
The company’s contingent resource of 1214 billion cubic feet (BCF) of natural gas is Mongolia’s biggest. The project currently contains a 5300BCF prospective resource across a total 8400 square kilometres of ground.
Like many nations, Mongolia is keen to transition away from energy produced from burning coal. Coal seam gas is considered ideal as a “clean transition fuel” because it emits about half the carbon of coal-generated electricity and burns cleaner than other fossil fuels.
TMK believes its Gurvantes XXXV project has the tremendous advantage of proximity to northern China’s gas pipelines and provides the company with the opportunity to become a regionally significant, reliable source of natural gas supply for Mongolia’s domestic market and the region’s energy infrastructure.

Published Date:2025-07-28