TMK Energy Leading Mongolia’s Energy Transformation with Coal Seam Gas and Sustainable Innovation

About TMK Energy Limited

TMK Energy Limited (ASX: TMK) is an Australian-listed gas exploration company, actively shaping the global energy landscape. Its flagship Gurvantes XXXV Project in Mongolia’s South Gobi Basin spans 8,400 km², featuring high-quality bituminous coal seams and six active mining operations. With a certified 1.2 TCF Contingent Resource, it is Mongolia’s largest gas resource. TMK also holds a 20% interest in the Talisman Deep Project in Australia’s Barrow-Dampier Sub-basin. By combining world-class exploration with significant reserves, TMK is positioned as a key player in advancing sustainable energy solutions, supporting global demand for cleaner, reliable energy sources.

TMK Energy: Powering Mongolia’s Energy Future

TMK Energy Limited is making remarkable progress in its journey to become a key player in Mongolia’s energy sector. Its flagship project, the Gurvantes XXXV Coal Seam Gas Project, continues to achieve critical milestones, positioning the company at the forefront of the region’s transition to cleaner energy sources. With six operational pilot wells, strategic partnerships, and a focus on sustainable growth, TMK is laying the foundation for long-term success in a competitive and evolving industry.

TMK has successfully brought all six pilot production wells at the Gurvantes XXXV Project into action, marking a significant achievement in its operational roadmap. The three original wells (LF-01, LF-02, and LF-03) saw a temporary reduction in pump speeds during the commissioning of the three new wells (LF-04, LF-05, and LF-06). However, production from the original wells quickly returned to pre-commissioning levels and even exceeded expectations once the pump speeds were optimised.

The new wells are steadily advancing towards their design flow rates. Water levels in these wells have already been reduced by 30%, and the company expects to reach target fluid levels within the next two to three weeks. This milestone is anticipated to significantly boost gas production, further solidifying TMK’s position as a reliable energy producer.

The use of Distributed Temperature Sensing technology in two of the new wells demonstrates TMK’s commitment to leveraging advanced tools for efficiency. This cutting-edge system identifies the most productive zones within the production interval, providing critical data to optimise gas and water flow rates.

Strategic Partnerships Driving Growth

TMK Energy’s vision of transforming the Gurvantes XXXV Project into Mongolia’s first coal seam gas-to-power initiative took a major step forward with its recent partnership with Jens Energie LLC, a German-backed power generation provider. This agreement is a cornerstone of TMK’s growth strategy, enabling it to bring a gas-fired power plant to Mongolia at no cost to the company.

The power plant, expected to be operational by April 2025, will provide electricity to the local grid, marking a significant milestone in the country’s energy landscape. TMK has committed to supplying 5000 cubic metres of gas per day by June 2025, with Jens retaining the option to purchase up to 15,000 cubic metres daily for an initial two-year period, extendable for another two years.

This partnership positions TMK as a key contributor to Mongolia’s energy future while creating a stable revenue stream for the company. It also aligns with global efforts to adopt cleaner energy solutions, as coal seam gas represents a more environmentally friendly alternative to traditional coal-fired power.

Unlocking the Potential of Mongolia’s Rich Resources

The Gurvantes XXXV Project spans an expansive 8400 square kilometres in Mongolia’s South Gobi Basin, an area renowned for its vast coal deposits. With a certified contingent gas resource of 1.2 trillion cubic feet (TCF) and an additional prospective resource of 5.3 TCF, the project holds immense potential for growth.

This strategic location near northern China’s extensive gas pipeline network further enhances TMK’s ability to meet regional energy demands. The proximity to these pipelines not only offers logistical advantages but also positions the company to supply cleaner energy to one of the world’s largest energy markets.

TMK’s 100% ownership of the Gurvantes XXXV Project, following its acquisition of a 33% stake from Talon Energy in 2023, underscores its commitment to capitalising on this resource-rich area. This full ownership allows the company to maintain greater control over operations, streamline decision-making, and maximise the project’s value.