TMK Energy has increased its average daily gas production by 5% in July 2026, with August figures already surpassing 800m3/day. The company is advancing its 2026 Work Program and finalising design for a Gas to Power Project, targeting first power generation by year-end.
- July gas production up 5% to 778m3/day
- August production exceeding 800m3/day
- New COO Steve Skinner appointed for 2026 program
- Drilling of LF-08 well imminent with Major Drilling contract pending
- Gas to Power Project design finalised, operational by December
Steady Gas Production Growth Despite Operational Hurdles
TMK Energy Limited (ASX:TMK) reported a 5% increase in average daily gas production during July 2026, reaching approximately 778 cubic metres per day (around 27,500 standard cubic feet). This comes despite the LF-03 well being offline for a pump replacement and several power interruptions that affected output. Early August figures show daily production exceeding 800m3, edging closer to the company’s next milestone of consistent rates above 850m3/day (30,000 scfd).
2026 Work Program Gains Momentum with New Leadership and Drilling Plans
Central to TMK’s growth strategy is its 2026 Work Program, which focuses on optimising existing wells through re-completions and drilling up to two new wells, starting with LF-08. The company recently appointed Steve Skinner as Chief Operating Officer, a petroleum engineer with over 25 years of US oil and gas experience, including work in the San Juan Basin, a pioneering coal seam gas region. Skinner is finalising the program details as TMK prepares to mobilise equipment sourced mainly from China to Mongolia.
Contract negotiations with Major Drilling, the successful tenderer for the drilling work, are nearing completion, with operations expected to kick off shortly. The re-completion efforts involve installing smaller casing and pump sizes to enhance long-term production, a strategy informed by the success of the LF-07 well, which remains the best performer under the revised reservoir management plan.
Advancing the Gas to Power Project with Dashvaanjil Group
TMK and its partner Dashvaanjil Group have completed the final design and engineering phase for their Gas to Power Project (GPP) at the Gurvantes XXXV Pilot Well Project. The GPP aims to generate power from produced gas, targeting operational status by December 2026. The project is positioned to demonstrate the viability of gas-powered electricity for remote mining operations in Mongolia, a significant milestone for both partners. Final commercial negotiations and a definitive investment decision are expected by October.
Alongside these developments, TMK completed a key infrastructure upgrade in July by replacing the temporary water pond liner with a more durable structure, supporting ongoing production activities. Water production remained stable at about 441 barrels per day, which bodes well for the coal seam gas potential of the field.
Bottom Line?
TMK’s steady production gains and operational upgrades set the stage for a potentially transformative 2026, but the success of its drilling program and Gas to Power Project hinges on timely contract execution and commercial agreements.
Questions in the middle?
- Will the LF-08 well replicate LF-07’s strong performance under the new reservoir management plan?
- Can TMK finalise commercial terms and secure investment to bring the Gas to Power Project online by year-end?
- How will operational challenges like power interruptions be mitigated to sustain production growth?