TMK Energy says average gas production at its Gurvantes XXXV pilot in Mongolia has risen 11% above August’s daily average, with several wells reaching record rates. The company is now pursuing higher production, a gas-to-power project and regulatory steps to convert its 2C resources into reserves.
- Weekly gas production above 900m3 a day
- 11% increase on August’s average rate
- Record output from three additional wells
- 2026 drilling and re-completion program approaching
- Regulatory discussions on reserves and exploitation licence
Gurvantes Pilot Production Passes 900m3 a Day
TMK Energy Limited (ASX:TMK) has reported another step-up in production from its 100%-owned Gurvantes XXXV Pilot Well Project in Mongolia, with output averaging more than 900 cubic metres a day, or roughly 32,000 standard cubic feet a day, over the past week. That rate is 11% above the project’s average daily production in August.
The increase is notable because it is no longer confined to one well. TMK said LF-02, LF-05 and LF-06 are now producing at record highs, alongside the previously highlighted LF-07. The company said the pattern indicates growing gas desorption across the field, although the announcement does not provide individual well rates or establish that commercial production has been reached.
Production Growth Builds Commercial Case
TMK’s accompanying figures show gas production growth of more than 350% over the past 12 months. Management regards the continued month-on-month improvement as a strong indicator that the pilot may reach the minimum commercial flow rates needed to support full-field development.
That remains a target rather than an achieved milestone. The project is preparing for its 2026 drilling and well re-completion program, which should provide the next operational test of whether the recent gains can be sustained and extended across the pilot area.
Regulatory Path Moves Alongside Gas-to-Power Plans
TMK said senior management was in Mongolia this week advancing discussions with regulators over the progression of Gurvantes XXXV’s 2C contingent resources into initial reserves and, ultimately, an exploitation licence. Neither the reserve conversion nor the licence has been secured, and the announcement gives no timetable or revised reserve estimate.
Chief executive Dougal Ferguson said the company’s remaining priorities for 2026 include delivering the work program, implementing the Gas to Power Project at the pilot and progressing the discovered 2C resources towards reserves and an exploitation licence. TMK also identified a broader appraisal drilling program in 2027 as part of its longer-term development path, but the immediate question is whether rising pilot output can translate into repeatable commercial flow rates.
Bottom Line?
The production trend is moving in the right direction, but sustained rates, the 2026 drilling program and regulatory progress will determine whether the pilot’s promise becomes a development case.
Questions in the middle?
- Can the project maintain production above 900m3 a day as operating conditions change?
- When, if at all, will TMK demonstrate the minimum commercial flow rates required for full-field development?
- What reserve conversion and exploitation licence milestones will emerge from the company’s regulatory discussions in Mongolia?