TMK Energy Boosts Gas Production 357% and Slashes Costs by Over $1 Million in 2025
TMK Energy Limited has delivered a record-breaking quarter of gas production alongside significant cost reductions, setting the stage for a pivotal year focused on commercialising its vast resource base through new partnerships.
- Record quarterly gas production with month-on-month increases
- Over $1 million in recurring costs eliminated during 2025
- Reservoir pressure decline confirms effectiveness of revised management plan
- Completion of 2025 exploration drilling confirming coal seam extensions
- Capital consolidation and unmarketable parcel sale underway to streamline shareholder base
Record Production and Operational Excellence
TMK Energy Limited (ASX – TMK) closed out 2025 on a high note, reporting its fifth consecutive month of increasing gas production at the Pilot Well Project. The company achieved an average daily gas rate of approximately 463,000 cubic metres in the December quarter, a remarkable 357% increase compared to 2024. This surge reflects the successful implementation of a revised reservoir management plan introduced in August 2025, which has also reduced costly pump blockages and workovers.
Operational reliability remains strong, with all wells maintaining over 99% uptime. Stable water production rates around 500 barrels per day further support the field’s consistent performance, reinforcing confidence in the company’s reservoir assumptions.
Cost Discipline and Strengthened Team
Alongside production gains, TMK has made significant strides in financial discipline, cutting more than $1 million in recurring costs since 2024. Field operating costs fell by 41%, staff costs by 47%, and administrative expenses by 23%, underscoring a leaner and more efficient operation. Key appointments, including an experienced Operations Superintendent based at the Pilot Well Project, have enhanced technical rigour and freed senior management to focus on strategic initiatives.
Exploration Success and Reservoir Insights
The company completed its 2025 exploration drilling program, confirming extensions of the coal seam play fairway east of Nariin Sukhait and intersecting thick, gas-rich coals within the Pilot Well Project. Core samples are undergoing laboratory analysis, with full results expected in the first quarter of 2026. Reservoir pressure continues to decline as anticipated, nearing critical desorption pressure; a key milestone expected to unlock further production increases.
Capital Structure and Shareholder Streamlining
In October 2025, TMK completed a 55 – 1 capital consolidation, significantly reducing the number of shares on issue and simplifying its capital structure. To further streamline its shareholder base and reduce administrative costs, the company initiated an unmarketable parcel sale targeting shareholders holding less than $500 worth of shares. This process, expected to conclude by mid-February 2026, aims to improve market liquidity and reduce overheads associated with small holdings.
Looking Ahead – Partnering and Commercialisation
With reservoir modelling nearing completion and technical peer review underway, TMK plans to launch a partnering process in February 2026. Interest from third parties has been growing, reflecting the attractiveness of TMK’s substantial resource. The company’s focus for 2026 will be on commercialising this resource through partnerships and advancing near-term production initiatives, positioning TMK for a potentially transformative year.
Bottom Line?
As TMK Energy gears up for partner-led commercialisation, the market will be watching closely for how these operational gains translate into sustainable growth.
Questions in the middle?
- How will the upcoming reservoir modelling report influence production forecasts and investor confidence?
- What types of partners is TMK targeting for its 2026 commercialisation strategy?
- How will the unmarketable parcel sale impact shareholder composition and trading liquidity?
