ASX-listed energy company TMK Energy has delivered a significant operational milestone, announcing its fifth straight month of rising gas production from its flagship Mongolian coal seam gas venture.
Record Flows as Momentum Builds
The company's wholly owned Gurvantes XXXV project achieved a new daily production record in December 2025. Output reached approximately 570 cubic metres, or over 20,100 standard cubic feet per day. This figure represents a solid 13 per cent increase on the average flow recorded in November.
Notably, production has remained robust since Christmas Day, consistently exceeding 20,000 cubic feet daily. In a further positive sign for reservoir management, water production has held steady at around 511 barrels per day.
Approaching a Critical Commercial Threshold
The steady climb in gas volumes, paired with stable water output, is a clear indicator that reservoir pressure is being effectively drawn down. This progress is steering the project toward a pivotal technical milestone known as critical desorption pressure.
"The continued month-on-month increase in gas rates is a very positive indicator that we are continuing to reduce the reservoir pressure and are approaching the all-important critical desorption pressure," said TMK Energy chief executive officer Dougal Ferguson.
Crossing this threshold can materially accelerate production rates, transforming a technical pilot into a commercially viable operation.
From Pilot to Power and Future Revenue
With all wells operating at greater than 99 per cent uptime, overall gas production across the pilot area is now more than four times higher than it was in August 2025. This rapid scaling has prompted TMK to look beyond mere proof of concept.
The company has initiated detailed planning to configure the pilot wells so gas can be combined and potentially used for on-site power generation. Any excess electricity could be sold into the local Mongolian grid, providing an early revenue stream.
This development aligns with Mongolia's goals to bolster domestic energy security through scalable, local supply projects. For TMK, the strong production data creates valuable optionality as it engages with regulators and potential gas offtake partners.
Mr Ferguson confirmed that commercialising the enormous coal seam gas resource is a key focus for 2026, with the pilot program expected to deliver materially higher gas rates in the coming months.
The consistent operational progress, reducing uncertainty step-by-step, demonstrates the Gurvantes project is firmly finding its stride as it advances toward first commercial gas.
