TMK Energy Opens Appraisal Pathway After Gurvantes Gas Record

Record gas production strengthens Gurvantes pilot

TMK Energy Limited (ASX:TMK) has moved its Gurvantes XXXV Coal Seam Gas Project into a more consequential phase, pairing a regulatory discovery acceptance with its strongest quarterly production yet. Average daily gas output rose 17.5% from the June quarter to approximately 819m³, or 28,922 standard cubic feet a day, while the latest seven-day average reached about 1,000m³ a day.

September itself set a monthly record at roughly 872m³ a day. The company said production improvements were recorded across several wells, including new individual highs at LF-02, LF-05 and LF-06. Water production averaged 434 barrels a day, down 5% from the previous quarter, while reservoir pressures continued to fall as the revised dewatering plan progressed.

The operating trend builds on the September production record, which was reported earlier in October as workover and drilling equipment moved towards site. TMK says the latest production rate points to another monthly record in October, although the company has not presented that outcome as completed.

Discovery acceptance starts 90-day appraisal process

On 2 October, TMK lodged a formal Declaration of Gas Discovery under Mongolia’s Petroleum Law covering wells LF-01 to LF-07. The regulator, MRPAM, accepted it on 15 October. That acceptance allows the company to progress to the next stage by lodging and agreeing an appraisal program within 90 days.

The regulatory milestone does not itself establish reserves or guarantee a production licence. If the appraisal program is accepted, TMK expects an 180-day test production period to begin. During that period, it plans to prepare an initial reserves report and a plan of development, with an exploitation or production licence described as the final step in the process. The regulatory discovery acceptance previously opened this pathway, but the quarterly report now places production and field activity alongside it.

LF-03 workover and LF-08 drilling form immediate test

TMK’s 2026 work program comprises the re-completion of three existing production wells, LF-03, LF-02 and LF-06, plus a new pilot production well, LF-08. The workover rig has arrived and operations have begun at LF-03; the drilling rig is expected to mobilise for LF-08 after rigging-up and crew mobilisation.

The new well is intended to use an optimised design and apply the revised reservoir management plan from the outset. Subject to the results of this year’s work, TMK intends to extend the re-completion program to its remaining existing wells during 2027. The company is also planning a broader appraisal program to assess its stated 1.2 trillion cubic feet of contingent resources.

Cash funds near-term work but not the whole development path

TMK ended September with $3.84 million in cash, no debt and no drawn financing facilities. It used $685,000 in operating cash and $867,000 on exploration and evaluation during the quarter. The Appendix 5B calculation gives the company 2.48 quarters of funding at the reported spending rate, a useful near-term buffer but not a funding solution for a larger appraisal and development campaign.

The proposed 1MW Gas to Power Project remains under commercial discussion with partner Dashvaanjil Group LLC. Engineering and costing work continued during the quarter, but the project still depends on final commercial arrangements and investment decisions by both parties. The next hard evidence will come from the LF-03 recompletion, LF-08 drilling and the regulator’s response to the appraisal program, rather than from the discovery declaration alone.