Key Highlights

  • TMK lodged a Declaration of Discovery for the Pilot Well Project on 2 October 2026, which the Mongolian regulator accepted on 15 October 2026.
  • The declaration starts a 90-day appraisal and evaluation period.
  • An extended production testing period of at least 180 days follows the appraisal period.
  • Next steps include lodging an appraisal program and an initial reserves determination.

TMK Energy Limited (ASX:TMK) announced on 20 October 2026 that its formal Declaration of Discovery for the Pilot Well Project at its 100% owned Gurvantes XXXV licence in Mongolia has been accepted by the regulator, the Mongolian regulator, MRPAM. The step begins the process towards an exploitation licence and the booking of initial reserves.

The declaration

TMK made the Declaration of Discovery on 2 October 2026 under Article 22.2 of the Petroleum Law of Mongolia. It covers wells LF-01 to LF-07, which make up the entire Pilot Well Project. The regulator accepted the declaration on 15 October 2026. The company describes this as the first step in moving the Gurvantes Project from exploration to appraisal and, eventually, to the booking of reserves and the grant of a production licence.

Appraisal and testing period

The declaration formally begins a 90-day appraisal and evaluation period, which precedes an extended production testing period lasting at least 180 days. TMK states that it will lodge an appraisal program with the regulator, and that the 2027 appraisal program is being developed and is expected to be lodged in the coming months. During the extended production testing period, the company will begin preparing an initial reserves report and a plan of development.

Reserves and licensing steps

Following the appraisal program, the process includes an initial reserves determination under the Mongolian Minerals Reserve Council. The final step in the sequence is the award of an exploitation or production licence. The release does not provide dates for the reserves determination or for the licence application, and it does not give a gas volume or reserves estimate.

Work program and gas production

TMK's 2026 Work Program is already under way and is expected to contribute to increased gas production levels during the extended production testing period. The company states that the coal reservoir is desorbing gas and that gas production is on a trajectory it expects to reach commercial rates in the testing period. These are company expectations and no production rates were stated in the announcement.

Project structure

The declaration is made pursuant to the terms of the Production Sharing Contract covering the Gurvantes XXXV licence, and TMK holds 100% of the Pilot Well Project. The release notes that Mongolian law governs the sequence of appraisal, testing, reserves booking and licensing.

Sequence under the Petroleum Law

Under the Petroleum Law, acceptance of the declaration allows TMK to lodge and agree an appraisal program with the regulator within 90 days. After the regulator accepts that program, the test production period of at least 180 days begins, during which the company will prepare its initial reserves report and plan of development. The final step is the award of an exploitation or production licence.

Company characterisation of the step

TMK describes the declaration as the first in a series of steps required for the project to move from exploration to appraisal and the booking of reserves. It says that, with the coal reservoir desorbing gas, it is now the appropriate time to declare the Pilot Well Project a discovery under the terms of the Production Sharing Contract.

Summary of the process

The announcement records an accepted Declaration of Discovery, a 90-day appraisal period, a testing period of at least 180 days, a reserves determination and a licence application, with no reserves or commercial flow rates yet stated.