Highlights

  • Average gas output rose 17.5% to 819 m3/day in the September 2026 quarter.
  • September set a monthly record at 872 m3/day, with current output around 1,000 m3/day.
  • Mongolia's regulator accepted TMK's Declaration of Gas Discovery on 15 October 2026.
  • Cash stood at A$3.84 million at quarter end, with no debt.

TMK Energy Limited (ASX:TMK) has released its quarterly activities report for the period ended 30 September 2026, covering its 100%-owned Gurvantes XXXV coal seam gas project in Mongolia. The quarter delivered record gas rates from the pilot well project and a key regulatory milestone with the acceptance of a gas discovery declaration.

Record Gas Production at the Pilot Well Project

Gas production averaged 819 m3/day (about 28,922 scfd) for the quarter, up 17.5% from about 697 m3/day in the June quarter. September was a record month at 872 m3/day, and current output is about 1,000 m3/day, roughly 15% above the September average.

Wells LF-02, LF-05 and LF-06 each set record gas rates in September. Water production averaged 434 barrels per day, down 5% on the prior quarter, which the company says indicates no active aquifer recharge. Reservoir pressures continued to fall under the revised Reservoir Management Plan.

Gas Discovery Declaration Accepted

TMK made a Declaration of Gas Discovery covering wells LF-01 to LF-07 on 2 October 2026 under Mongolia's Petroleum Law, and the regulator MRPAM accepted it on 15 October 2026.

The next step is to lodge and agree an appraisal program within 90 days. Once accepted, a 180-day test production period begins, during which TMK will prepare an initial reserves report and a plan of development, ahead of a potential exploitation or production licence.

2026 Work Program and Financial Position

The 2026 work program includes re-completions of wells LF-03, LF-02 and LF-06, with work at LF-03 beginning after quarter end, and the drilling of a new pilot well, LF-08. TMK is also progressing a 1MW Gas to Power Project with Dashvaanjil Group LLC, which remains subject to commercial arrangements and a final investment decision.

TMK held A$3.84 million in cash at 30 September 2026, down from A$5.39 million, with no debt. Operating outflows were A$685,000 and exploration spending was A$867,000 for the quarter. The company reported about 2.48 quarters of estimated funding.

Key Takeaways

  • Gas rates at Gurvantes XXXV continued to rise, reaching record levels in September.
  • Acceptance of the discovery declaration moves TMK into the appraisal phase under Mongolian law.
  • Well re-completions, the LF-08 well and the Gas to Power Project are key items to watch.