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Doug Bright
TMK Energy has moved a step closer to its goal of declaring its Mongolian Gurvantes XXXV coal seam gas pilot well project commercial after posting higher May production.
The company has also lined up a July drilling date for up to three new wells and a possible well workover campaign, along with progressing a small-scale gas-to-power project.
Average daily gas production for May at Gurvantes rose four per cent to 24,260 standard cubic feet per day (scfd) despite several interruptions across the field.
The company said its best well, LF-07, continued to lead the way, with a rapid increase in March to 17,900 scfd, while in May it delivered more than 10,000 scfd on average for the month before recently lifting to between 11,000 and 12,000 scfd.
‘New analysis undertaken by the operations team has also identified several production optimisation opportunities.’
TMK Energy chief executive officer Dougal Ferguson
The overall result came despite LF-03 being offline for most of May while waiting on a pump replacement, LF-02 being temporarily shut in for testing and back flushing, and LF-01 undergoing mechanical repairs.
Field water production fell 10 per cent to 450 barrels per day, which TMK attributed mainly to those interruptions.
TMK says planning for its 2026 pilot production drilling is well advanced, with a tender announced in Mongolia for up to three additional production wells and long-lead items already ordered ahead of a targeted July start.
Management has also adjusted its drilling and completions design by reducing hole and pump sizes to improve productivity, drawing on lessons from LF-07, the field’s best gas producer.
In anticipation of higher gas flow, the company recently announced the appointment of Danny Chong as production manager. TMK says his early analysis has already highlighted opportunities to lift output from existing wells and refine the design of new wells and possible workovers to boost gas production across the field.
TMK Energy chief executive officer Dougal Ferguson said: “During May, our focus remained on finalising the 2026 drilling and workover program for commencement in July 2026. A huge amount of work has been undertaken by our drilling, engineering and operations team in recent weeks to develop a work program which has the highest possible chance of delivering early gas, whether that be from existing wells or drilling new pilot production wells.”
In the coal seam gas industry, a workover is a major intervention on an existing production well that can involve pulling out, repairing or replacing downhole equipment. Unlike routine maintenance, workovers typically require heavy specialised equipment to fix mechanical issues or improve reservoir performance.
TMK has also executed an agreement with one of Mongolia’s biggest liquefied petroleum gas importers and distributors to push ahead with an initial 1MW gas-to-power project.
The plan is to use gas from the pilot field to generate electricity for operations, reducing diesel use and limiting the impact of unplanned power outages, while also demonstrating to industry and government that coal seam gas can be a viable off-grid energy source.
In preparation for upcoming production plans, the company recently met with Mongolia’s regulator, the Mineral Resources and Petroleum Authority of Mongolia, to discuss the path to converting its 8,400-square-kilometre exploration tenure into an exploitation licence.
TMK expects to begin that process after this year’s work program delivers more data to support a gas reserves assessment.
With gas rates still building and several catalysts lined up for the second half, TMK appears to have steady momentum as it works to convert pilot-scale progress into a commercial result.
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