Operational Risks Loom as TMK Pushes for Higher Gas Production

Record Production Milestone

TMK Energy Limited (ASX, TMK) has announced a significant operational breakthrough at its Gurvantes XXXV Coal Seam Gas Project, achieving record gas production in October 2025. The company reported a 25% increase in gas output compared to September, reaching a total of 12,264 million cubic feet and averaging approximately 395 million cubic feet per day. This marks more than a doubling of production since August, underscoring the rapid progress of the pilot well project.

Encouragingly, early November figures indicate a further 19% increase in daily gas production, averaging around 470 million cubic feet per day. This upward trajectory suggests that TMK’s revised reservoir management plan and operational adjustments are yielding tangible results.

Operational Enhancements and Reliability

Alongside rising gas volumes, TMK has improved pump uptime from 86% in September to an impressive 97% in October. This boost in equipment reliability is critical for sustaining production levels and reducing downtime. Water production, a key factor in managing reservoir pressure and facilitating gas desorption, remained stable at an average of 502 barrels per day, indicating effective reservoir management.

The company attributes these operational gains to the implementation of a revised reservoir management plan, which promotes a slower, less aggressive production approach to avoid pump blockages and maintain reservoir integrity.

Strategic Leadership Appointment

In a strategic move to further optimise operations, TMK appointed Brad Reeve as Operations Superintendent, commencing his role on 3 November 2025. Based on-site in Mongolia, Mr Reeve’s mandate includes reviewing safety and environmental protocols, enhancing operational efficiencies, and exploring the feasibility of utilising the produced gas for onsite power generation; a potential value-add that could improve project economics and sustainability.

CEO Dougal Ferguson expressed optimism about the appointment, highlighting Mr Reeve’s prior positive impact and the expectation that his leadership will drive continued operational improvements as the project scales.

Future Outlook and Modelling Insights

Complementing operational advances, TMK has completed initial reservoir simulation modelling, integrating historical production data and reservoir parameters. These simulations provide predictive insights into ultimate gas recovery and economic viability from typical vertical wells, feeding into a detailed pre-feasibility study expected in the coming months. This modelling work is pivotal in shaping TMK’s development strategy for the Gurvantes XXXV resource, which remains substantial and largely untapped.

Overall, TMK’s latest update signals a maturing project moving steadily towards commercial viability, supported by operational discipline, technical modelling, and strengthened onsite management.