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TMK Energy has set a new benchmark in gas production at its Pilot Well program in southern Mongolia, registering a 10% increase to more than 10,000 cubic metres of gas for the month. This achievement not only marks a record monthly output but also includes the highest daily gas production to date from the Gurvantes XXXV coal seam gas project.

A key highlight of the month was the emergence of gas "slugs"鈥攍arge, high-pressure gas bubbles鈥攊n wells LF-04 and LF-06. According to management, this is a strong indicator that the reservoir is nearing critical desorption pressure, a milestone that signals more substantial gas flow is imminent. This pressure decline has been confirmed through recent testing, with another pressure build-up test planned on well LF-02. This comparison with past data will help determine how close the system is to reaching its critical threshold.

CEO Dougal Ferguson noted, 鈥淭he project continues to show encouraging signs with record gas rates and early signs of gas slugging, suggesting we are making strong progress toward critical desorption pressure.鈥� Achieving this milestone is central to TMK鈥檚 2025 objectives and is expected to trigger a significant boost in production.

To accelerate progress, TMK drilled three new production wells and is preparing to add at least one more near the current Lucky Fox well cluster. The additional well is expected to be drilled before the end of June and will support both licence commitments and increased output. This expansion aligns with TMK鈥檚 gas sales agreement with Jens Energie LLC and is expected to increase sales capacity once critical desorption pressure is achieved.

Adding to its operational toolkit, TMK has deployed advanced Distributed Temperature Sensing (DTS) technology in wells LF-05 and LF-06. This system provides precise data on reservoir behavior and confirms that the water being pumped is primarily from coal seams鈥攁n indicator of favorable permeability and gas flow potential.

Despite LF-05 experiencing significant downtime for maintenance, TMK still achieved its record output. The company expects LF-05 to return to production soon, adding to the overall performance.

TMK鈥檚 Nariin Sukhait project spans 60 square kilometers and holds Mongolia鈥檚 largest 2C contingent resource of 1,214 billion cubic feet (BCF) of natural gas, with a broader prospective resource of 5,300 BCF across 8,400 square kilometers. Positioned near northern China鈥檚 pipeline infrastructure, TMK is poised to become a key supplier of cleaner energy, supporting Mongolia鈥檚 shift from coal-based energy and contributing to regional energy security.