Gurvantes XXXV Gas Output Jumps 21% in November, Hits 500m Daily

TMK Energy has achieved a new record in daily gas production at its Gurvantes XXXV Coal Seam Gas Project, signaling strong progress toward commercial output in 2026. A recent technical workshop with partner J-Energy confirmed the project's robust economic potential.

  • Daily gas production exceeds 500 million cubic feet per day
  • November average production up 21% from October
  • Technical workshop with J-Energy validates project economics
  • Reservoir modelling advances support 2026 commercial production plans
  • Water production rates sustain reservoir depressurisation efforts
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Record Production Milestone

TMK Energy Limited has announced a significant operational achievement at its 100% owned Gurvantes XXXV Coal Seam Gas Project in Mongolia, with daily gas production surpassing 500 million cubic feet per day for consecutive days. This milestone, initially targeted for 2025, underscores the accelerating momentum of the project as it edges closer to commercial viability.

November’s average daily production has reached approximately 480 million cubic feet, marking a 21% increase over October’s record average of 395 million cubic feet. This steady upward trend reflects the effectiveness of the company’s revised reservoir management plan and ongoing well performance improvements.

Strategic Validation and Technical Progress

Last week, TMK’s management convened with its strategic alliance partner, J-Energy, in Beijing for a technical and commercial workshop. The meeting served to validate the technical merits of the Gurvantes XXXV Project and reaffirm its substantial economic potential. Positioned near the Chinese border, the project benefits from proximity to a major energy market, enhancing its strategic value.

Key to this progress is the detailed reservoir modelling and subsurface data review recently undertaken by TMK. These efforts aim to refine the understanding of gas drainage patterns, optimize well spacing, and forecast productivity, all critical inputs for the upcoming 2026 Work Program and Budget. The company anticipates that these insights will facilitate the transition to commercial gas flow rates next year.

Operational Insights and Future Outlook

CEO Dougal Ferguson highlighted the dual importance of increasing gas production alongside sustained water extraction, which is essential for depressurising the reservoir toward the desorption pressure needed for enhanced gas release. Maintaining water production at over 500 barrels per day supports this process, indicating that the project is on a clear trajectory toward its commercial goals.

Looking ahead, TMK is preparing to advance its pre-feasibility study, incorporating the latest reservoir data to optimize development plans. The company’s confidence has grown markedly in recent months, buoyed by technical progress and strategic validation, setting the stage for further operational updates as the project moves swiftly forward.

Bottom Line?

TMK Energy’s record production milestone sets a promising stage for commercial gas output in 2026, but execution risks remain as reservoir modelling and development plans evolve.

Questions in the middle?

  • How will TMK’s reservoir modelling impact the timing and scale of commercial production?
  • What are the capital expenditure implications for the 2026 Work Program?
  • How might geopolitical factors near the China-Mongolia border influence project development?