# TMK Energy Initiates Mongolian Coal-Bed Methane Well Optimisation Campaign The company targets enhanced gas production rates at Gurvantes XXXV pilot wells. - **Source:** [Sydney Morning Herald - Business](https://www.smh.com.au/rss/business.xml) - **Published:** 2026-10-14 - **Topic:** [Business](https://brifing.si/c/business) - **Original article:** - **On Brifing:** https://brifing.si/s/548c531f-d199-4115-8686-e6aa1b545827 ## Pilot Program Mobilisation Starts TMK Energy initiated its field program at the Gurvantes XXXV coal-bed methane project in Mongolia. The company deployed a workover rig and a 70-tonne crane to start well optimisation tasks across its wholly owned acreage. Operations began by removing the idle pump and production string from well LF-03. ## Technical Re-Completion Strategy The engineering team aims to improve gas flows by altering downhole dimensions across target wells. Specialists will install a 5.5-inch slotted liner inside the existing 7-inch liner, followed by smaller tubing and pumps. This reduced-diameter configuration will initially be deployed on wells LF-03, LF-02, and LF-06. ## New Infill Drilling Planned Following the three workover completions, TMK plans to spud a new production well designated as LF-08. This well will be drilled with a smaller diameter from the outset to fit the 5.5-inch slotted liner. Successful results will trigger identical re-completions across all existing Lucky Fox wells in 2027. ## Rising Daily Gas Output September production across the portfolio averaged 872 cubic metres daily, marking an eight percent rise over August. Early October figures increased further to 950 cubic metres per day, equivalent to 33,549 standard cubic feet daily. Management notes these climbing numbers indicate the reservoir is approaching commercial flow thresholds. ## Leadership Outlines Field Timelines Chief executive officer Dougal Ferguson confirmed that field operations will proceed continuously over the next two months. Reactivating well LF-03 after extended downtime is expected to provide an immediate lift to aggregate field volume. Field teams intend to validate production stability before expanding engineering methods to outperforming assets. ## Strategic Export Proximity Advantage The 8,400-square-kilometre permit is situated less than 20 kilometres from the Chinese border, offering direct access to major energy demand centres. Surrounding mining infrastructure also requires local industrial power. This strategic location provides viable off-take channels if commercial production rates are proven across the primary pilot footprint. ## Certified Subsurface Resource Base Independent assessments certify 1.2 trillion cubic feet of 2C contingent gas resources across a 60-square-kilometre section of Gurvantes XXXV. An additional 5.3 trillion cubic feet of prospective resources highlights broader regional potential. The company must execute further appraisal activity before moving toward full-scale field development and monetization. ## Downstream Power Commercialisation Steps TMK proposed a one-megawatt gas-to-power plant alongside Mongolian partner Dashvaanjil Group to supply internal site operations and industrial users. Management targets a final investment decision before October concludes, contingent on commercial contracts. Proving repeatable extraction methods remains the essential prerequisite for scaling up local power generation. ## Sources covering this story - https://www.smh.com.au/business/companies/tmk-energy-steps-on-gas-with-fresh-mongolian-drilling-20261014-p615lo.html?ref=rss&utm_medium=rss&utm_source=rss_business — --- _Summary written by Brifing from the original reporting. Copyright in the original article belongs to its publisher; read the full piece at the link above._