TMK Energy Advances Gurvantes XXXV Gas Project in Mongolia
Regulatory discovery declaration marks a shift from exploration to formal evaluation phase.
1Regulatory Milestone Achieved
TMK Energy secured a formal Declaration of Discovery for its Gurvantes XXXV project from Mongolia’s Mineral Resources and Petroleum Authority. Lodged on 2 October and accepted by 15 October, this regulatory approval covers seven wells at the Lucky Fox complex. It officially transitions the asset from exploration into the evaluation phase.
2Resource Scale and Potential
The project spans 8400 square kilometres within the South Gobi Basin. It holds an independently certified 2C contingent resource of 1.2 trillion cubic feet of coal seam gas across 60 square kilometres. Additionally, the wider area contains 5.3 trillion cubic feet of best-estimate prospective resources, representing a significant gas prize.
3Production Testing Mechanics
Coal seam gas extraction requires pumping water to reduce reservoir pressure, allowing methane to desorb from the coal surface. The seven-well pilot tests whether these gas flows can be sustained and repeated. October output reached 950 cubic metres per day, showing a steady increase from the 872 cubic metres recorded in September.
4Extended Production Test Roadmap
CEO Dougal Ferguson confirmed that the declaration allows for an Extended Production Test lasting at least 180 days. During this period, the company will define initial reserves and finalize a field development plan. This process is essential for securing the eventual production licence, which can span up to 30 years in Mongolia.
5Appraisal and Workover Strategy
TMK has 90 days to submit a 2027 appraisal program to the authorities. Meanwhile, the 2026 work program focuses on re-completing existing pilot wells to boost output. Management aims to determine if these lower-cost interventions can effectively increase gas flows before and during the upcoming extended testing phase of the project.
6Domestic Energy Market Context
Mongolia relies heavily on aging coal-fired power stations and electricity imports from Russia and China. Developing domestic gas supply could provide a more reliable energy source for the nation. The project’s location in the South Gobi Basin also places it near mining districts that represent potential local demand for gas.
7Regional Export Opportunities
Situated less than 20 kilometres from the Chinese border, the Gurvantes project holds long-range export potential. Accessing major regional gas markets remains a possibility if necessary infrastructure and supply projects are successfully delivered. This geographic proximity serves as a strategic advantage for the company’s future commercialization efforts in the broader region.
8Early Monetization Initiatives
TMK and partner Dashvaanjil Group are developing a 1-megawatt gas-to-power project. This initiative aims to utilize pilot gas to supply company operations and nearby industrial users. By creating an early use case for the gas, the company seeks to demonstrate value while the broader appraisal process continues toward a production licence.