TMK Energy (ASX: TMK) has announced a significant production milestone at its Gurvantes XXXV CSG project, exceeding 25,000 scfd (greater than 720 m3/day).
TMK Energy's 100% owned Gurvantes XXXV CSG project in Mongolia achieved daily gas production exceeding .
The LF-07 well is a key driver, producing over 13,000 scfd and showing an accelerating upward trend.
Evidence of a localized gas saturation zone actively desorbing gas suggests possible expansion across the structure as reservoir pressure declines.
LF-07 Well Leads Production Drive
LF-07 has become the first well in the field to produce more than 10,000 scfd, as reported in the January 2026 operations update, having exceeded that figure on two days that month.
This well's performance contributes significantly to the overall project's production ramp-up, with sustained LF-07 performance plus ongoing desorption having the potential to unlock additional gas capacity within the pilot area and improve project economics.
Pressure build-up tests indicate reservoir pressure is decreasing in line with the model, supporting desorption potential.
This aligns with previous updates, which showed reservoir pressure improving since November 2025 and progressing toward critical desorption pressure.
The company noted that desorption signals are early-stage, and sustained production and expansion depend on reservoir behaviour and long-term desorption dynamics.
Phased Development Plan
The Gurvantes XXXV project has a conceptual phased development plan using Production Development Units (PDUs).
Previous updates highlighted a 2C Contingent Resource base of 1.2 TCF (with 722 BCf recoverable to 750m) and potential upside to 5.3 TCF 2U Prospective Resources.
The project targets a low-capex development with modest capex of approximately 10 million per PDU.
TMK Energy has initiated a formal process to secure upstream, midstream, and downstream partnerships.
An MoU with Mongolia's Ministry of Energy exists to support offtake and financing for the project.
Funding runway was noted as approximately 1.3 quarters in the December 2025 quarterly report, with cash at period end being 1.816 million.
TMK Energy's Production Milestone
TMK Energy's announcement of exceeding 25,000 scfd production at its Gurvantes XXXV project is a positive operational development, primarily driven by strong performance from the LF-07 well and early signs of coal seam gas desorption.
While this milestone validates the project's potential, investors will closely monitor the progress in securing partnerships and funding, and the long-term demonstration of sustained desorption and resource conversion.
