TMK Energy’s Gas Milestone Sets Up Its Next Growth Test

October Production Reaches Another Record

TMK Energy Limited (ASX:TMK) has set another production record at its 100%-owned Gurvantes XXXV Pilot Well Project, with average gas output rising 11% in October to about 971 cubic metres a day, or roughly 34,300 standard cubic feet a day. September’s average was 872 cubic metres a day.

“Lucky Fox pilot well program water and gas production (since inception).”

The increase came before any new wells or 2026 re-completions entered production. Uptime remained high apart from occasional short power interruptions, while field-wide water production was stable at approximately 410 barrels a day. The latest result extends the run of improving monthly output, following the September production record reported earlier in the pilot’s development.

Two-Rig Work Program Moves Into Drilling

“2026 Work Program preparations underway”

TMK’s 2026 work program is now active after equipment delivery delays. The workover rig arrived in October and has begun preparing idle well LF-03 for the first of three planned re-completions, while the drilling rig is now on site and rigged up for LF-08. The company expects drilling and re-completion work to finish during November, with LF-08 targeted to enter production in mid-December 2026.

That timetable comes with a near-term trade-off. TMK plans to shut in LF-02, currently the field’s second-best producer, for a pressure build-up test while LF-08 is drilled nearby. November production could therefore fall temporarily, although the test is intended to provide information on reservoir depressurisation and reduce the risk of further wellbore damage during drilling.

Gas Discovery Acceptance Opens Licence Process

MRPAM, the Mongolian regulator, has accepted the company’s declaration of a gas discovery at the Pilot Well Project. That is a regulatory milestone rather than a production licence: it allows TMK to progress from an exploration licence toward an application for an exploitation or production licence that could run for more than 30 years, subject to the remaining process.

The development follows the accepted discovery declaration, which earlier coverage identified as opening the next stage toward appraisal, reserves and a potential production licence. The current announcement does not provide a reserves estimate, commerciality determination or confirmation that a production licence has been granted.

Gas to Power Decision Deferred Until 2027

TMK has completed engineering and costings for its demonstration Gas to Power project with Dashvaanjil Group LLC, but has deferred the final investment decision to the first quarter of 2027. The company said the delay to the drilling program means it wants to confirm minimum gas rates before finalising the size and scalability of the engines.

The decision is designed to avoid an over- or undersized installation and excess gas flaring, according to the announcement. It also leaves the project’s timing dependent on what the re-completions and LF-08 add to the field’s sustainable production profile. The next hard evidence will come from the work program, the LF-02 pressure test and LF-08’s expected December start-up.