Highlights

  • TMK Energy presented its Gurvantes XXXV Coal Seam Gas Project at the South-West Connect Conference.
  • The project has an independently assessed 2C contingent resource of 1.2 TCF and a 2U prospective resource of 5.3 TCF.
  • The regulator, MRPAM, accepted the company's gas discovery declaration under Mongolia's Petroleum Law.
  • A revised 2026 work program includes one new pilot well and up to six recompletions.

TMK Energy Limited (ASX:TMK) has released a presentation delivered by Chief Executive Officer Dougal Ferguson at the South-West Connect Conference. The presentation focused on the Gurvantes XXXV Coal Seam Gas Project in Mongolia's South Gobi Basin, outlining the project's resources, pilot program progress, regulatory steps and plans to supply gas-fired power to local markets.

Gurvantes XXXV Project and Resources

TMK Energy is the 100% owner and operator of the Gurvantes XXXV Project, which covers about 8,400 km² under a Production Sharing Contract. The project is located near the South Gobi mining district, close to China and about 400km from the existing West-East gas pipeline.

Independent assessment by NSAI estimated a 2C contingent resource of 1.2 TCF (1,214 BCF), with Phase 1 targeting 722 BCF of the lowest-cost 2C resources. A separate 2U prospective resource of 5.3 TCF has been estimated outside Nariin Sukhait. The presentation included cautionary statements noting that prospective resources relate to undiscovered accumulations and require further exploration and appraisal.

Pilot Program and Regulatory Progress

The company operates a seven-well pilot project and reported record gas production, with near-wellbore desorption confirmed. Its 2026 work program has been revised to include one new pilot well, LF-08, and up to six recompletions, at an estimated capital cost of US$1.3 million to US$1.8 million. TMK stated this delivers at least four new wellbores and up to eight for the same cost as three new wells. A workover rig is on location, and a drilling rig is being mobilised for LF-08.

The Mineral Resources and Petroleum Authority of Mongolia (MRPAM) has accepted the company's gas discovery declaration under the Petroleum Law. The next steps include seeking approval for an appraisal program, conducting an extended test production period of at least 180 days, determining reserves and submitting a production development plan, before applying for an exploitation licence.

Mongolia's Energy Needs and Commercialisation Partnership

The presentation noted that coal supplies around 85% of Mongolia's primary energy, while mining-driven electricity demand continues to grow. Forecasts cited in the presentation project demand rising to about 3,080 MW by 2030, and the company highlighted ageing infrastructure and air quality challenges in Ulaanbaatar.

TMK has signed a memorandum of understanding with Dashvaanjil Group, described as Mongolia's leading LPG company, to explore a pathway from the Lucky Fox pilot wells through gas processing to modular gas-fired power generation for local markets. The company also noted it remains open to upstream and downstream partnerships and is adopting AI-driven data modelling to support capital allocation.

Key Takeaways

  • Gurvantes XXXV holds an independently assessed 1.2 TCF 2C contingent gas resource in Mongolia.
  • The acceptance of the gas discovery declaration moves the project into the next stage of the regulatory process.
  • The revised pilot program aims to deliver more wellbores within a similar capital budget.
  • A partnership with Dashvaanjil Group outlines a possible route to supply gas-fired power locally.