TMK Energy Limited announced that its operations and project activities at the Gurvantes XXXV Coal Seam Gas Project remain on track. The company has finalized a drilling contract with Major Drilling for an additional pilot production well at the Nariin Sukhait site (LF-07), with drilling scheduled to commence in the second half of July 2025. All necessary long lead items are now on site, and preparatory site work, including pad preparation and sumps, is complete. The TXD200 drill rig, a more powerful model compared to previous rigs and operated under a fixed price turnkey contract, will be used, thereby reducing the risk of cost overruns. Implementation of recommendations from the recently completed Independent Technical Review is in progress. One key update is the introduction of an improved and advanced mud system designed to mitigate potential adverse impacts on the reservoir during drilling. Gas production from the pilot production well complex remains steady, with outputs in line with both expectations and previous month’s performance. Efforts to attract project partners have intensified following a recent visit by company representatives to Mongolia and China. These discussions have generated strong early interest from parties known for their expertise in horizontal drilling and fracking operations in coal seam gas projects. The strategic advantages of the project include its large resource size, proximity of approximately 20 kilometers to a major border crossing between China and Mongolia, and the supportive stance of the Mongolian government towards developing a gas industry. Although the company’s initial focus is on partnerships with Chinese firms, TMK Energy Limited is open to engaging with all interested and capable parties. In parallel, the company is pursuing technical alliances with select service providers based in China, who possess extensive experience in the relevant drilling techniques. The update also noted a setback with an attempt to reactivate LF-05 for production. Additional required equipment has now been sourced, and another effort to bring LF-05 back on production will be made before commencing LF-07 drilling, leveraging both the previously used workover rig and the TXD200. Bullish sentiment stems from the strong interest being shown by potential project partners, the successful implementation of technical improvements, and the positive ongoing production from the pilot complex, all of which suggest a promising future for the project and potential material contributions to gas production. Conversely, the need for further equipment to restart LF-05 production may raise concerns about operational delays. However, given the measures being taken to address this issue and the proactive approach in partner engagement, the overall outlook remains favorable.