Highlights

  • TMK Energy has reported gas production at its Gurvantes XXXV pilot well project in Mongolia rising 11% above August's average daily rate.
  • Production has exceeded 900 cubic metres per day, around 32,000 standard cubic feet per day, over the past week, with wells LF-02, LF-05, LF-06 and LF-07 all at record highs.
  • Gas production has grown more than 350% over the past 12 months at the 100%-owned project, which hosts Mongolia's largest 2C contingent resource.
  • The company is progressing a 2026 drilling and re-completion program, a gas-to-power project at the pilot well, and a larger appraisal drilling campaign planned for 2027.

TMK Energy Limited (ASX:TMK) has reported record gas production at its Gurvantes XXXV coal seam gas pilot well project in Mongolia, with output climbing 11% above August's average daily rate and several wells hitting individual production highs. The update points to sustained momentum at the 100%-owned project, which the company says hosts the largest 2C contingent gas resource in the country.

Production Climbs to Record Levels

Gas production at Gurvantes XXXV has averaged more than 900 cubic metres per day, equivalent to roughly 32,000 standard cubic feet per day, over the past week, an 11% increase on August's average daily production. Four wells, LF-02, LF-05, LF-06 and LF-07, have each reached record production highs during the period. Over the past 12 months, TMK said total gas production from the project has grown by more than 350%, reflecting the cumulative effect of the pilot well program as additional wells have come online and existing wells have been optimised.

CEO Dougal Ferguson said the latest results reinforce the company's growing confidence in the project, noting that “our confidence in the commercial potential of the enormous Gurvantes XXXV Coal Seam Gas (CSG) Project continues to grow.” The comments reflect a project that TMK has consistently framed as central to its strategy of becoming a significant regional gas producer.

Scaling Up Toward Commercial Development

TMK holds 100% of the Gurvantes XXXV project, which the company describes as hosting the largest 2C contingent gas resource in Mongolia. Building on the current pilot production, the company is progressing a 2026 drilling and re-completion program designed to add further wells and optimise existing ones, alongside implementation of a gas-to-power project at the pilot well site that would allow produced gas to be converted directly into electricity.

Looking further ahead, TMK is working to progress its 2C contingent resources toward reserves status and secure an exploitation licence, steps that would underpin a broader commercial development of the project. The company has also flagged an expanded appraisal drilling program for 2027, with a stated objective of becoming the largest coal seam gas producer in Mongolia by the end of the current calendar year.

Conclusion

The latest production figures from Gurvantes XXXV show a project moving in the right direction, with record output from several wells and sustained double-digit percentage growth in gas production. As TMK Energy (ASX:TMK) works through its 2026 drilling and re-completion program and pursues an exploitation licence to convert its contingent resource into reserves, the pace of production growth reported so far will be an important reference point for the market. Investors following the stock may want to watch for further updates on the drilling program, the gas-to-power initiative, and progress toward reserve classification as the next milestones in the project's development.