TMK Energy Temporarily Curtails Gas Output After Record Rate Amid Operational Safety Measures
TMK Energy Limited (ASX:TMK) reported a 48% increase in average daily gas production at its Gurvantes XXXV Coal Seam Gas Project in March 2026, achieving a new peak daily rate before temporarily curtailing output for operational safety. The company also secured a Memorandum of Understanding with Mongolia’s regulator to facilitate power generation and progress towards an exploitation license.
- March average daily gas production rose 48% to 866 m³/day
- Record daily gas rate of 1,353 m³/day achieved before curtailment
- MoU signed with Mongolian regulator MRPAM for power generation use
- 2026 budget and work program approved, including drilling three new wells
- Operational adjustments made to manage reservoir and safety
Record Gas Production at Gurvantes XXXV
TMK Energy Limited (ASX:TMK) has reported a significant increase in gas production at its 100% owned Gurvantes XXXV Coal Seam Gas Project in Mongolia. Average daily gas output in March 2026 rose by 48% to approximately 866 cubic metres per day (m³/day), compared to February’s average of 583 m³/day. On 21 March, the project achieved a new record daily gas production rate of 1,353 m³/day (~47,800 standard cubic feet per day), driven primarily by the LF-07 well within the Pilot Well Project complex.
This milestone confirms that gas desorption is occurring in the reservoir, indicating that reservoir pressure has been sufficiently reduced to release commercially meaningful quantities of gas. However, production was temporarily curtailed after reaching this peak to implement operational safety measures and preserve gas for future beneficial use, such as power generation. Since the curtailment, gas production has resumed an upward trend, currently around 23,000 scfd.
Regulatory Progress and Strategic Framework
On 19 March, TMK Energy and the Mongolian regulator, the Mineral Resources and Petroleum Authority of Mongolia (MRPAM), signed a Memorandum of Understanding (MoU) that provides a clear pathway for the use of produced gas in TMK’s proposed power generation project. This agreement also outlines the process to commence converting parts of the Production Sharing Contract (PSC) area into an exploitation license, which would enable commercial production in the future.
The MoU and the regulator’s approval of TMK’s 2026 budget and work program; including plans to drill three additional production wells; reflect a collaborative approach to developing Mongolia’s nascent gas industry. TMK’s CEO, Dougal Ferguson, highlighted the strong intent from the Mongolian government to accelerate gas industry growth and reduce gas flaring through practical frameworks for gas utilisation ahead of formal exploitation licensing.
Operational Adjustments and Future Drilling Plans
The rapid acceleration of gas rates at well LF-07 necessitated surface facility and operational changes to ensure safe and continuous operations. These changes have been successfully implemented, enabling the well to handle higher gas rates safely. TMK plans to manage the pace of production increases carefully to protect the reservoir and maximise long-term gas volumes.
With the 2026 work plan and budget approved by MRPAM, TMK is positioned to advance its drilling program promptly. The company intends to drill three additional production wells this year, aiming to build on the recent production gains and support the development of its power generation project.
This operational update follows TMK’s recent capital raise of $6 million to accelerate drilling and commercialisation efforts at Gurvantes XXXV, underscoring the company’s commitment to scaling production and advancing its project towards commercial viability. The recent surge in gas output builds on earlier progress, including a record gas production rate exceeding 900 m³/day reported in early March 2026, demonstrating consistent upward momentum in the project’s development TMK Energy Secures $6M to Fast-Track Gurvantes XXXV Gas Production.
Bottom Line?
TMK Energy’s operational and regulatory advances mark important steps in developing Mongolia’s gas sector, though the pace of production growth will require careful management to balance safety and reservoir sustainability.
Questions in the middle?
- How quickly will TMK be able to convert the PSC area into an exploitation license following the MoU?
- What are the expected timelines and capital requirements for the planned drilling of three additional wells in 2026?
- How will TMK balance production increases with reservoir preservation and operational safety in the coming months?
