TMK Energy Limited (TMKEF) Gas Rates Surpass Yet Another Milestone
TMK Energy Limited (ASX:TMK) (OTCMKTS:TMKEF) announced that gas production continues to rapidly increase at its 100% owned Gurvantes XXXV Coal Seam Gas (CSG) Project in Mongolia, with another record gas rate achieved over the weekend.
- Gas production over the weekend continued to increase to a new record daily gas rate of ~1,000m3 /day (>35,000 scfd)
- LF-07 is contributing ~70% of the total gas being produced and further confirms gas is desorbing from the coal at LF-07
- Gas production is now ~100% higher than early February 2026 when the field was at ~500m3 /day, demonstrating the speed at which gas production rates accelerate once critical desorption is achieved
The gas production rate accelerated past 35,000 standard cubic feet per day (scfd), a more than 10% increase since the same time last week and another strong indication that the LF-07 well has reached an inflection point, being confirmed desorption (liberation) of gas from the coals. Despite a small slowing down of the pump speed on LF-07, the well continues to outperform and gas rates continue to increase with that individual well now producing >25,000 scfd.
Based on an updated reservoir model, the LF-07 well is expected to continue to increase in gas rate over the coming weeks and months. As has been communicated to shareholders, a total gas rate for the Pilot Well Project more than 100,000 scfd is a strong indication of future commerciality and has been set as an internal target to be reached in 2026 Achieving critical desorption at LF-07 was not originally expected to start occurring as soon as it has, based on the Langmuir curve and the pressure build up test results (refer to ASX announcement Improving Reservoir Pressure dated 18 February 2026). The recent increase in gas rates is highly encouraging, and the data is being closely monitored and analysed, and reservoir model updated.
Accordingly, the Company will continue to report any material changes to gas rates at appropriate intervals in addition to the monthly operations updates, which provide shareholders with more detailed analysis of monthly production statistics.
Mr Dougal Ferguson, TMK Energy's Chief Executive Officer commented:
"The production graph and acceleration of the gas rate clearly shows that the reservoir at the LF-07 location has achieved the critical desorption pressure. Other wells, in particular LF-05 and LF-02 also continue to increase gas rates week on week, and we would expect to see similar acceleration in gas rates from these wells when they reach critical desorption pressure.
LF-07 is clearly the first well that has reached this very important inflection point and is a clear demonstration of the commercial potential of this asset. The "hockey stick" style increase in rates which are expected from coal seam gas projects once they reach this stage appears to be where we are at, and we expect this trend to continue for both LF-07 and other wells within the Pilot Well Project for many months to come.
This is a truly momentous moment for the Company and its shareholders, and proof of commerciality is now well within our sights."
Dougal Ferguson Chief Executive Officer +61 8 6319 1900 dferguson@tmkenergy.com.au
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