TMK Energy’s August Gas Output Rises 4 Percent as Drilling Program Advances
TMK Energy’s Gurvantes XXXV Pilot Well Project saw a 4% increase in average daily gas production in August 2026, reaching approximately 28,600 scfd. The company has signed a drilling contract with Major Drilling to kick off a 2026 drilling and well re-completion campaign, while its Gas to Power Project nears operational readiness.
- Average daily gas production rises to 810m3/day in August
- Drilling contract signed with Major Drilling for 2026 program
- Gas to Power Project FEED completed, operational target set for December
- Instantaneous gas spikes exceed 50,000 scfd at LF-07 well
- Power disruptions prompt fast-tracking of Gas to Power Project
Steady Production Gains Despite Weather Setbacks
TMK Energy Limited (ASX:TMK) reported a 4% lift in average daily gas production during August 2026 at its Gurvantes XXXV Pilot Well Project, with output climbing to around 810 cubic metres per day (approximately 28,600 standard cubic feet per day). This increase came despite a temporary shutdown at well LF-03 for pump replacement and a rare weather event that disrupted power supply, briefly curtailing production. Water production remained stable at about 437 barrels per day.
Record Gas Spikes Signal Reservoir Potential
Notably, the well LF-07 has been delivering intermittent gas production surges, with instantaneous rates recently surpassing 50,000 scfd. Reservoir pressures continue to decline, which the company is monitoring closely as it hints at approaching a new production breakthrough. TMK’s CEO Dougal Ferguson highlighted these spikes as tantalisingly close to setting new records, underscoring the reservoir’s evolving dynamics.
Major Drilling Contract Sets Stage for Expansion
August also saw TMK secure a drilling contract with Major Drilling, enabling the commencement of the 2026 Work Program. The campaign includes drilling a new well (LF-08) and re-completing three existing wells, including LF-03, which has been offline for several months. These activities aim to boost gas output, prove commercial viability, and facilitate the booking of TMK’s maiden reserves. Long lead equipment is en route to Mongolia, with on-site operations expected to begin imminently.
Gas to Power Project Nears Operational Phase
TMK’s Gas to Power Project (GPP), in partnership with Mongolia’s Dashvaanjil Group LLC, has completed its Front-End Engineering Design (FEED). The project, designed to convert produced gas into electricity, is slated to be operational by December 2026, pending final commercial negotiations and investment decisions expected this month. The GPP is seen as a strategic move to improve power reliability at the pilot site, especially after recent power outages impacted production uptime.
Next Steps Toward Commercial Reserves and Development
Looking ahead, TMK’s focus will shift towards converting its substantial contingent gas resources into formal reserves and advancing a plan of development (POD) alongside securing an exploitation license. The successful ramp-up of production and the Gas to Power Project’s implementation will be critical milestones in demonstrating the project’s commercial potential and underpinning future growth.
Bottom Line?
TMK Energy’s operational momentum is building, but upcoming drilling results and final Gas to Power Project agreements will be pivotal for translating resource potential into commercial reality.
Questions in the middle?
- Will the 2026 drilling and well re-completions deliver sustained production gains to justify reserve bookings?
- How swiftly can TMK finalise commercial terms with Dashvaanjil to bring the Gas to Power Project online?
- What impact will improved power reliability have on production uptime and overall project economics?
