How TMK Energy’s Gurvantes XXXV Hit a New Gas Production High
TMK Energy has achieved a new record in gas production at its Gurvantes XXXV Coal Seam Gas Project in Mongolia, with output surpassing 900 cubic metres per day. This milestone paves the way for the company’s first gas-fired generator, targeting electricity supply to the local grid by late 2026.
- Record daily gas production exceeds 900 cubic metres at Gurvantes XXXV
- Well LF-07 drives a 500% increase in gas desorption rates
- Plans underway for TMK’s inaugural gas-fired power generator
- Target to deliver electricity to Mongolia’s grid by second half of 2026
- Water production steady, supporting reservoir modelling and development plans
Rapid Growth at Gurvantes XXXV
TMK Energy Limited (ASX:TMK) has announced a significant surge in gas production at its wholly owned Gurvantes XXXV Coal Seam Gas (CSG) Project in Mongolia. Over the weekend of 6 and 7 March 2026, the pilot well complex achieved a new record daily gas rate exceeding 900 cubic metres (approximately 31,800 standard cubic feet), marking a 33% increase from the previous record set in January.
The standout contributor to this growth is the LF-07 well, which has seen gas desorption rates accelerate by roughly 500% in recent months. Positioned up-dip within the subsurface structure, LF-07’s performance is driving the overall production increase, with average daily gas output in early March reaching around 873 cubic metres, a 50% rise compared to February.
Strategic Implications and Next Steps
This production milestone is more than just a technical achievement; it underpins TMK’s plans to deploy its first gas-fired generator. The company is actively engaging with potential off-takers and regulatory bodies to facilitate the delivery of electricity into the local grid by the second half of 2026. The modular and scalable design of the generator reflects TMK’s confidence in continued production growth.
Water production remains stable at about 500 barrels per day, consistent with reservoir models and the project’s conceptual development plan. This balance between gas and water output is crucial for sustainable operations and supports the company’s strategy to expand production through additional wells modeled after LF-07.
Outlook and Market Positioning
CEO Dougal Ferguson expressed cautious optimism turning into excitement as the project approaches what could be a historic milestone: the first commercial coal seam gas production in Mongolia from simple, low-cost vertical wells. The ongoing acceleration in gas rates suggests that TMK is on track to unlock significant value from its pilot well project.
While the timeline for the gas-fired generator depends on regulatory approvals and successful off-take agreements, the current trajectory positions TMK as a pioneering energy producer in the region. The company’s ability to translate production gains into power generation could open new revenue streams and strengthen its market presence.
Bottom Line?
TMK’s accelerating gas production sets the stage for Mongolia’s first commercial coal seam gas power generation, but execution risks remain.
Questions in the middle?
- Will TMK secure firm off-take agreements to support its gas-fired generator plans?
- How sustainable is the recent surge in gas production from LF-07 and other wells?
- What regulatory hurdles could impact the timeline for grid electricity delivery?
