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- Gas production continues to rapidly rise with a new record daily gas rate of >900m3 /day (>31,800 scfd) achieved over the weekend
- LF-07 confirmed to be now desorbing gas with the rate from that well accelerating ~500% in the last few months
- Gas rates now sufficient to support TMK's first gas fired generator with discussions underway to deliver first electrons into the local electricity grid by the second half of 2026
On 6 and 7 March, the pilot well complex produced ~31,800 standard cubic feet per day (scfd), an ~33% increase over the January record daily gas rate of ~23,800 scfd. Total gas production, particularly from LF-07, has been accelerating strongly week by week with the first week of March averaging ~873m3 per day, a 50% increase over the average daily gas rate achieved in February.
Average gas production during February was ~583m3 per day, a small decrease over January's average gas production rate of ~593m3. The small reduction was as a direct result of the pressure build up tests conducted in early February at both LF-01 and LF-04, which required both wells to be shut in for a period of 14 days and 7 days respectively.
The recent increase in gas production is primarily associated with strong gas production from LF-07, the most recent well drilled and a well that is up-dip in the overall subsurface structure. Planning for additional production wells drilled identical to LF-07 has been completed with new locations identified to further increase gas production in the short term.
Water production remains steady at around 500 barrels of water per day which aligns with the reservoir modelling work and the conceptual development plan and PDU concept, whereby water continues to be produced from the wells deeper in the structure and gas produced from wells higher up in the structure.
Current gas rates can now support detailed discussions with potential gas or power off takers for the Company's first gas fired generator project, which is being designed to be modular and scalable as gas rates continue to increase. The Company's goal is to deliver the first electrons into the local electricity grid in the second half of 2026, and it has already commenced discussions with vendors and regulators to achieve that objective.
Mr Dougal Ferguson, TMK Energy's Chief Executive Officer commented:
"Our cautious optimism has turned to high levels of excitement in recent weeks as we continue to see this week-by-week acceleration of gas production rates. Our expectation is for the gas rates to continue to materially increase from the Pilot Well Project over the coming months as LF-07 and other wells reach critical desorption pressure and gas begins to be liberated from the coals at ever increasing rates.
We are potentially seeing a major milestone in the making, with the first ever commercial coal seam gas being produced in Mongolia from simple, low cost, vertical wells.
These are and remain very exciting times for the Company and its shareholders and credit goes to all our dedicated team who have pushed through with this Project and are now seeing their hard work pay off with these very encouraging results."
About TMK Energy Limited:
TMK Energy Limited is a gas exploration company publicly listed on the Australian Stock Exchange (ASX:TMK,OTC:TMKEF) and (OTCMKTS:TMKEF), and is actively engaged in the global energy sector. With a 100% interest in the Gurvantes XXXV Project located in the South Gobi Basin of Mongolia, and a 20% interest in the Talisman Deep Project, which encompasses the Napoleon Structure located in the Barrow-Dampier Sub-basin, TMK continues to solidify its position in the industry.
TMK's flagship project, the Gurvantes XXXV Project, a comprehensive Coal Seam Gas (CSG) exploration initiative covering an expansive area of approximately 8,400 km2 in the South Gobi basin of Mongolia, boasts an array of distinct features. These include the presence of multiple extensively thick, top-quality, bituminous rank coal seams, which not only surface across the area but also extend along an impressive east-west strike, spanning approximately 150 km. The Project area also includes six active coal mining operations, along with twenty-six coal mining leases and a multitude of coal exploration licenses, which combined have defined a very large coal resource.
Source:
TMK Energy Limited
Contact:
Dougal Ferguson
Chief Executive Officer
+61 8 6319 1900
dferguson@tmkenergy.com.au
