TMK Energy Surges Past 35,000 scfd at Gurvantes XXXV, Signs of Commercial Breakthrough
TMK Energy has achieved a new record gas production rate at its Gurvantes XXXV Coal Seam Gas Project in Mongolia, with well LF-07 driving a rapid acceleration that signals approaching commercial viability.
- Record daily gas production rate of ~1,000 m³/day (~35,000 scfd)
- LF-07 well contributes approximately 70% of total gas output
- Gas production doubled since early February 2026
- Targeting over 100,000 scfd total gas rate in 2026
- Critical desorption pressure achieved, accelerating gas release
Record Gas Production Milestone
TMK Energy Limited (ASX:TMK) has announced a significant production milestone at its Gurvantes XXXV Coal Seam Gas (CSG) Project in Mongolia, with gas output reaching approximately 1,000 cubic metres per day (over 35,000 standard cubic feet per day). This marks a more than 10% increase from the previous week and a doubling of production since early February 2026, underscoring the rapid acceleration in gas flow as the reservoir dynamics evolve.
LF-07 Well Leads the Charge
The standout performer is the LF-07 well, which now accounts for around 70% of the total gas production. Despite a slight reduction in pump speed, LF-07 continues to outperform expectations, producing over 25,000 scfd on its own. This well has reached the critical desorption pressure; a key inflection point where gas begins to liberate rapidly from the coal seams, triggering a 'hockey stick' style increase in output typical of coal seam gas projects at this stage.
Encouraging Signs for Commercial Viability
The company’s updated reservoir model anticipates continued growth in gas rates from LF-07 and other wells such as LF-05 and LF-02, which are also showing week-on-week increases. TMK has set an internal target of exceeding 100,000 scfd total gas production within 2026, a threshold that would strongly indicate commercial viability for the Gurvantes XXXV project.
Unexpected Early Desorption and Optimism
Interestingly, the onset of critical desorption at LF-07 occurred earlier than initially predicted based on prior reservoir pressure tests and Langmuir curve analysis. This early breakthrough has injected fresh optimism into the project’s outlook, with management closely monitoring production data and updating reservoir models accordingly.
Management Commentary
CEO Dougal Ferguson highlighted the significance of this milestone, describing it as a "truly momentous moment" for TMK and its shareholders. He emphasised that the accelerating gas rates at LF-07 validate the commercial potential of the asset and expect similar trends to emerge from other wells as they reach critical desorption pressure.
With the Pilot Well Project demonstrating clear signs of commerciality, TMK is positioning itself to capitalise on Mongolia’s coal seam gas resources, potentially reshaping its market prospects in the energy sector.
Bottom Line?
TMK’s accelerating gas production at Gurvantes XXXV signals a pivotal step toward commercial success, but sustaining this momentum remains the key challenge ahead.
Questions in the middle?
- Will TMK sustain and scale gas production to meet or exceed the 100,000 scfd target in 2026?
- How will other wells in the Pilot Well Project perform as they approach critical desorption pressure?
- What are the operational risks or reservoir uncertainties that could impact long-term commercial viability?
