TMK Energy reported a record gas output of around 28,000 scfd in June 2026, backed by a fully funded 2026 work program and key management hires. The company is progressing a 1MW gas-to-power pilot with Mongolia’s largest LPG distributor.
- Record gas production of ~28,000 scfd in June quarter
- 2026 Work Program refocused on well re-completions and production growth
- Signed MoU with Dashvaanjil Group for 1MW gas-to-power project
- New COO and Production Manager appointed with extensive CSG experience
- Strong cash position of $5.4 million, no debt
Record Gas Production Drives Momentum
TMK Energy Limited (ASX:TMK) has surged to a new production milestone, recording approximately 28,000 standard cubic feet per day (scfd) of gas from its Gurvantes XXXV Pilot Well Project in Mongolia during the June 2026 quarter. This marks a continuation of steady month-on-month gains, culminating in the company’s highest quarterly gas output to date.
The Pilot Well Project’s gas production has benefited from increasing near well bore desorption, with well LF-07 notably delivering gas rates between 14,000 and 15,000 scfd by quarter’s end. These production spikes underline progress in reservoir depressurisation, a critical factor for unlocking coal seam gas reserves.
Optimised 2026 Work Program Targets Near-Term Growth
Following an Independent Technical Review in April, TMK refined its 2026 Work Program to prioritise near-term gas production through well re-completions and the drilling of at least one additional pilot well (LF-08). The review endorsed the reservoir management plan and recommended operational enhancements now embedded in the program.
Major Drilling has been selected to execute the upcoming drilling and workover activities, with contract negotiations nearing completion and drilling expected to commence imminently. The modified program aims to demonstrate commercial gas rates sufficient to support the booking of reserves and the pursuit of an exploitation license.
Strategic Partnership Advances Gas-to-Power Pilot
In a significant commercial development, TMK signed a Memorandum of Understanding with Dashvaanjil Group LLC, Mongolia’s largest LPG importer and distributor, to develop a 1MW gas-to-power generation facility adjacent to the Pilot Well Project. Engineering and design phases are nearing completion, with construction and commissioning targeted for the onset of Mongolia’s winter season.
The power plant will initially operate on a dual fuel mix of TMK’s produced gas and Dashvaanjil’s LPG, with the goal of progressively substituting LPG as natural gas volumes increase. This modular setup not only ensures a reliable power supply for continuous water production but also mitigates gas flaring and provides a commercial outlet for TMK’s gas output.
Strengthened Management Team Bolsters Execution
TMK has bolstered its technical and operational capabilities with the appointments of Steve Skinner as Chief Operating Officer and Danny Chong as Production Manager. Skinner brings over 25 years of oil and gas experience, including expertise in coal seam gas from the San Juan Basin in the US. Chong contributes more than a decade of CSG production optimisation experience from leading Australian energy companies Origin Energy and Santos.
These hires complement the company’s existing leadership and free up CEO Dougal Ferguson to focus on commercialisation and strategic partnerships, positioning TMK to effectively deliver on its 2026 objectives.
Robust Financial Position Supports Growth
TMK ended the quarter with a healthy cash balance of $5.4 million and no debt, fully funding the 2026 Work Program. Operating and investing activities consumed $690,000 and $301,000 respectively during the quarter, while financing activities contributed a net inflow of $46,000. The company estimates it has sufficient funding to cover nearly six quarters of planned expenditure.
With drilling contracts progressing and the gas-to-power project advancing, TMK is well positioned to capitalise on increasing gas production and move toward commercial reserve booking.
Bottom Line?
TMK’s record gas output and strategic partnerships set the stage for critical reserve bookings and commercial milestones in the coming quarters.
Questions in the middle?
- Will the upcoming drilling and well re-completions sustain or accelerate gas production growth?
- How quickly can TMK scale the gas-to-power project to fully replace LPG and secure stable offtake agreements?
- What are the timelines and hurdles for TMK’s exploitation license application following reserve bookings?