TMK Energy Lifts Gurvantes Gas Production as 2026 Work Program Nears

TMK Energy (ASX: TMK) has lifted average gas production at its 100%-owned Gurvantes XXXV Pilot Well project in Mongolia while preparing to begin its 2026 work program.

Average July production reached 778 cubic metres per day (m3/day), equivalent to about 27,500 standard cubic feet per day (scfd), representing an increase of about 5% from 742m3/day in June.

Production has continued rising into August, averaging more than 800m3/day and moving towards the Pilot Well project’s next milestone of maintaining rates above about 850m3/day, or 30,000scfd.

The improvement came despite the LF-03 well remaining off-line for a pump replacement and several power interruptions affecting production during July.

Water production across the field remained stable at about 441 barrels per day during July, with TMK continuing to see evidence of near-wellbore desorption as gas output increases.

Gas Rates Continue Rising

“Meanwhile, our production continues to rise on a month-by-month basis with continued evidence of near well bore desorption and further progression towards our gas production goal for 2026,” chief executive officer Dougal Ferguson said.

Progress is continuing on the Gas to Power project (GPP), with partner Dashvaanjil Group LLC recently visiting the Pilot Well project with TMK to finalise engineering and design ahead of detailed commercial negotiations and implementation.

“The GPP is expected to be operational prior to the end of this year, which will be a significant achievement by both the teams involved, and will demonstrate the benefit of the use of gas in power generation for remote mining projects in Mongolia,” Mr Ferguson said.

The company appointed petroleum engineer Steve Skinner as chief operating officer in July, strengthening its management and technical team ahead of the drilling and well optimisation campaign.

TMK also completed replacement of the Pilot Well project’s temporary water pond liner with a more permanent structure during July as part of maintenance ahead of field operations.

Work Program Moving Closer

TMK has acquired all long lead items required for the 2026 work program, which will combine re-completion of existing well bores using smaller casing and pump sizes with drilling of up to two new production wells to improve long-term production performance.

Most of the equipment is being sourced directly from China, with transportation to Mongolia expected to begin in the coming weeks.

Work will begin with LF-08, which is being positioned as a potential early gas producer because of its up-dip location, with TMK aiming to replicate the performance of LF-07 under its revised reservoir management plan.

Final contract negotiations are underway with Major Drilling following the tender process, with the drilling contract expected to be executed within days and operations to start as equipment and personnel become available.