TMK Energy reports a steady 13% rise in average daily gas output in April 2026, supported by a recent Independent Technical Review and preparations for pilot well drilling in Mongolia. The company prioritises using produced gas for reliable power supply amid growing energy demand.
- April gas production up 13% from February
- Independent Technical Review endorses reservoir plan
- Pilot well drilling scheduled for Q3 2026
- Focus on gas-powered permanent power supply
- Early-stage talks with Mongolian government and private groups
Steady Production Growth Despite Operational Challenges
TMK Energy Limited (ASX:TMK) reported a 13% increase in average daily gas production in April 2026 compared to February, reaching 663 cubic metres per day; the second highest monthly rate on record, trailing only March’s peak. This steady rise comes despite a necessary curtailment of output in late March and operational hurdles, including a mechanical pump failure at well LF-03 and intermittent power outages that have hampered continuous production.
The company continues to manage its wells under the existing reservoir management plan (RMP), which has delivered consistent improvements over the past nine months. In particular, the LF-07 well has shown ongoing gas rate increases following the March curtailment, with pump speeds and fluid levels carefully balanced to optimise output without risking well integrity.
Independent Technical Review Supports Current Strategy with New Optimisations
April saw TMK complete its third Independent Technical Review (ITR), engaging both internal and external experts experienced in coal seam gas projects globally. The review broadly endorsed the current RMP but also identified several well optimisation techniques to be implemented across existing wells and the upcoming pilot wells. TMK emphasises the importance of replicating LF-07’s strong performance to boost overall production.
This technical validation comes as TMK prepares to drill new pilot production wells in the third quarter of 2026, aiming to elevate gas output significantly. The company’s reservoir management approach and the insights from the ITR will guide these efforts, potentially accelerating the transition from pilot to commercial production.
Prioritising Beneficial Use of Gas for Reliable Power Supply
Alongside production growth, TMK is fast-tracking a priority project to utilise the produced gas for permanent power generation at the Pilot Project site. This initiative aims to reduce gas flaring and secure a stable energy supply for operations, with excess power potentially supplied to local users. A Memorandum of Understanding signed last month with Mongolia’s regulator MRPAM enables the company to use pilot project gas for its own power needs, marking a critical step toward operational self-sufficiency.
CEO Dougal Ferguson highlighted the strategic importance of this initiative during his recent visit to Mongolia, noting credible discussions with government bodies and private consortiums eager to address the country’s growing energy shortages. These talks, though preliminary, reflect increasing recognition of TMK’s Gurvantes XXXV Project as a potential contributor to Mongolia’s energy security.
Engagement with Mongolian and Australian Stakeholders
TMK continues to strengthen its relationships with key stakeholders, including the Australian Embassy and Austrade, to promote Australian coal seam gas expertise and investment in Mongolia. The company’s CEO met with Australian Ambassador Leo Zeng and Deputy Head of Mission Andrew Berryman to discuss the project’s progress and opportunities.
The growing profile of the Gurvantes XXXV Project follows TMK’s recent record gas production and regulatory approvals and builds on the momentum from the March surge in output and MoU signing with Mongolian authorities for power generation use. These developments position TMK to capitalise on Mongolia’s urgent energy needs while advancing its operational roadmap.
Bottom Line?
TMK’s operational gains and strategic initiatives position it to scale gas production and power supply in Mongolia, but execution of pilot drilling and power projects will be critical to sustain momentum.
Questions in the middle?
- How will TMK manage operational risks like pump failures and power outages moving forward?
- What timeline and regulatory hurdles remain for pilot well drilling and commercial gas use?
- Can TMK secure binding agreements with Mongolian stakeholders to underpin project expansion?