TMK Energy has notched up a double win at its wholly-owned Gurvantes XXXV coal seam gas project in Mongolia, smashing another monthly production record and securing regulatory acceptance of its declaration of (gas) discovery, putting it firmly on the path to a potential 30-year production licence.

The dual achievements come as the company kicks off a new drilling and well enhancement campaign designed to push the project towards commerciality. The company says average daily gas production for October jumped 11 per cent to 971 cubic metres per day (m³/day), up from 872m³/day in September.

The October record of 34,300 standard cubic feet per day came without any contribution from new wells, with field uptime remaining high despite brief power cuts and water production holding steady at 410 barrels daily.

‘The Company remains fully funded for the 2026 work program and is continuing towards its target of proving commerciality of the project.’
TMK Energy chief executive officer Dougal Ferguson
Plenty is riding on that success. Spanning 8400 square kilometres of Mongolia’s South Gobi Basin, Gurvantes XXXV boasts an independently certified 2C contingent resource of 1.2 trillion cubic feet of gas (Tcf) already discovered but not yet commercially developed. Another 5.3Tcf of prospective resources adds serious exploration upside.

A drilling rig and workover rig are now on site, giving TMK the firepower to kick its gas ambitions up another gear. And rather than splash out on a swag of new wells, the company is looking to squeeze more gas from its existing producers through a lower-cost re-completion program.

TMK Energy chief executive officer Dougal Ferguson said: “With the 2026 Work Program now underway, we expect to see further significant increases in gas production rates over the next few months as both LF-08 is brought into production and the three well re-completions are undertaken.”

Following equipment-delivery delays, the campaign kicked off in October with the cleanout of idle well LF-03, setting the stage for the first of three planned re-completions. The next step is to spud its latest well, Lucky Fox-08 (LF-08). The field campaign is scheduled to wrap up in November, with the new well slated to be producing by mid-December.

TMK also plans to temporarily shut in LF-02, its second-best producer, for a pressure build-up test during nearby drilling. While the pause could take some shine off November’s production figures, it should provide valuable data on reservoir depressurisation while protecting the well from further damage.

Looking further ahead, the company has flagged additional drilling in 2027 to test the wider resource and support development planning. If the current re-completions deliver the goods, the technique could be rolled out across the remaining Lucky Fox wells, giving TMK another cost-effective lever to lift gas flows.

Adding to the project’s credentials, the company is pushing ahead with a proposed one-megawatt gas-to-power plant at site alongside local partner Dashvaanjil Group, with engineering and costings complete. A final investment decision has shifted to the first quarter of 2027, allowing fresh production data to guide engine sizing and help avoid excess flaring. The plant could power TMK’s operations and nearby industrial customers.

The bigger prize could lie just across the border in China. Coal supplies 85 per cent of Mongolia’s primary energy. However, Gurvantes sits less than 20km from the Chinese border, putting TMK on the doorstep of one of the world’s biggest gas markets. Rising demand and a preference for local gas supplies and pipeline imports over pricier seaborne liquefied natural gas (LNG) could give it a valuable commercial edge.

On the regulatory front, TMK has 90 days to lodge and agree an appraisal program with Mongolia’s Mineral Resources and Petroleum Authority, paving the way for at least 180 days of extended production testing. The results will underpin initial gas reserves and a field development plan, bringing a 30-year exploitation licence with a possible five-year extension, another step closer.

Armed with record gas flows, a key regulatory milestone and a capital-savvy drilling program now spinning the rods, TMK is edging closer to proving it can consistently and economically extract gas from its sizeable Mongolian resource.

If the next round of wells delivers the goods, the company could be sitting on the makings of a long-term energy business with a potentially lucrative export market just a stone’s throw away.

Published Date:2026-11-09