TMK Energy Limited announced that drilling has begun on its seventh pilot production well, LF-07, at the Lucky Fox Pilot Well Project in Mongolia. The drilling commenced on 27 July 2025 and is part of the company’s ongoing effort to boost gas production. The LF-07 well is being drilled under a fixed-cost turnkey contract, a move expected to further accelerate the depressurisation of the reservoir and enhance overall production capacity by steering the operation closer to the targeted critical desorption pressure. The operation benefits from recent recommendations coming from an independent technical review. In response, the project is now employing Major Drilling’s larger and more powerful TXD200 rig—the first instance of its use in Mongolia. This new technology is anticipated to increase the efficiency of drilling operations, complementing earlier successes like the remediation of LF-05 and the substantial scale-up from three to six production wells over the past 12 months. Traders looking at this development might see bullish potential, as the successful integration of advanced drilling technology and operational scalability could drive higher gas production and reinforce the company’s growth prospects. On the other hand, some may view the announcement with caution, given the typical risks associated with large-scale drilling projects and the technical challenges inherent in reservoir management. Overall, the progress at the Lucky Fox Pilot Well Project is a noteworthy indicator for investors tracking energy sector developments.