TMK Energy has notched up a 60 per cent month on month jump in gas output from its flagship Gurvantes XXXV coal seam gas project in Mongolia, setting the stage for a ramp-up in activity as it shifts into full field development planning.
The company says the project’s September gas tally hit nearly 10,000 cubic metres, just shy of a monthly record, with standout flows coming from its most recent well, LF-07, which is producing at strong rates even at low pump speeds. TMK says the strong flow rate is a clear sign the company’s updated drilling and reservoir management techniques are paying off.
Water production across the pilot field also held steady at about 500 barrels per day, a critical metric that indicates good potential for future gas flows as the wells continue to dewater.
Notably, LF-02, which has been long regarded as one of the best gas producers in the program, was shut in for much of September for testing, but still managed to produce about 30 cubic metres of gas per day during that period. This suggests some of the coal seams are already releasing gas under their own pressure, a process known as desorption - a big step forward for the pilot project.
From a production operations perspective, the Pilot Well project has continued to perform in line with expectations and is currently producing gas at near record levels.
TMK Energy chief executive officer Dougal Ferguson
Gurvantes spans 8400 square kilometres in the South Gobi Desert, less than 50 kilometres from China’s Shivee Khuren border crossing and close to important Chinese gas infrastructure.
The area is known for its enormous coal deposits and therefore ideal for coal seam gas production. The gas field contains a 1.2 trillion cubic feet (Tcf) contingent resource and offers further significant upside potential from a 5.3Tcf prospective resource still to be explored.
TMK Energy has now drilled seven operational wells at its Lucky Fox pilot project within the Gurvantes XXXV coal seam gas field and has been steadily turning up the dial on production since Christmas.
With LF-07 now online and flowing strongly, management says every well in the program is performing in sync with its revamped reservoir management plan - a playbook designed to protect the wells and coax the best gas flow from the coal seams.
Through September, the company deliberately kept the pumps running at low speeds to fine-tune its approach, ensuring the seams stay healthy while its newly appointed coal seam gas reservoir engineer analyses how to extract gas more efficiently.
The updated strategy has been designed to focus on drawing out as much water as possible - the key to freeing up gas pressure - while curbing the build-up of troublesome coal dust, or “fines,” that can clog pumps and slow output.
Every barrel of water and cubic metre of gas produced is adding valuable insight. The data is being used to build a predictive model, or “type curve,” showing how a standard production well is likely to behave over time.
The company says that model will then become a cornerstone of TMK’s full-field development plan as the company prepares to scale Gurvantes into a commercial gas project.
In August, Management also announced a strategic alliance with Beijing-based J-Energy to harness the gas specialist’s technical expertise and regional connections to quickly advance the project should commerciality be proven.
Despite some unexpected power outages affecting operations in September, TMK remains upbeat about the direction of the pilot campaign and is now pushing ahead with a broader 2025 exploration program, backed by a recently oversubscribed $3.5 million placement.
To support this next phase of activity, it has also hired a full-time Operations Superintendent who will take up the role in early November.
With near-record gas now flowing, new exploration kicking off and field-wide planning entering high gear, TMK Energy looks to be shifting gears in Mongolia’s South Gobi Basin. The project is edging closer to becoming a commercial-scale producer and the market will no doubt be watching closely.

Published Date:2025-10-14