TMK Energy tracks record gas flow rates in Mongolia
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Michael Busbridge
TMK Energy continued to make solid progress in pressurization testing at the company’s Gurvantes coal seam gas (CSG) project in Mongolia, increasing gas flow rates by a whopping 18 percent in November.
The company says its pilot wells are now meeting expectations with stronger gas flows and consistent water rates. While water production continued at 493 barrels per day in parallel with October, gas production was 466 cubic meters per day, down from 395 cubic meters in October.
This, together with the additional nine percent increase seen so far in December, indicates that the coal seam gas reservoir is steadily depressurizing and moving towards a critical desorption point.
The November result also marks the fourth consecutive monthly improvement in flow rates since TMK implemented its revised reservoir management plan (RMP) in August.
‘We’ve had four consecutive months where gas production levels have increased.’
TMK Energy Chief Executive Officer Dougal Ferguson
Pressure reduction is the key to releasing coal seam gas and is achieved by pumping water out of the coal seam to gradually relieve the underground confining pressure. As water recedes, the reservoir approaches the critical desorption point, where methane gas begins to flow at commercial rates without being depressurized.
TMK says the notable flows come from its newest well, which is producing at strong rates even at low pump speeds, a clear sign that the company’s updated drilling and reservoir management plan is working.
The company has not experienced any pump blockages or delays since the implementation of the revised plan, reinforcing confidence in the new, slower and less aggressive production strategy.
According to the released data, the latest hole bottom pressure values received from the pilot match the simulated models perfectly. These models are based on Langmuir curves, which measure how much gas a sample of coal can absorb at different pressures. The higher the pressure, the more gas can be held in a larger reservoir.
As detailed in the RMP, the planned four-day closure confirmed that reservoir pressure continues to decline with ongoing water extraction. Although these planned shutdowns generally reduce monthly gas production, they are important to verify that reservoir pressure continues to decline towards the critical desorption pressure.
TMK Energy CEO Dougal Ferguson said:“We have had four consecutive months where gas production levels have increased but, more importantly, there have been no completions, good water production has continued and the decline in reservoir pressure has continued.”
In parallel with its desorption activities, the company completed its 2025 exploration program and fulfilled an important commitment within the scope of the license.
Two exploration wells were drilled in the Soumber region to the east of the pilot project. While the first one hit approximately 35 meters of coal at depths of up to 300 meters, the second one, which cut approximately 11 meters of coal, had to stop at 249 meters due to the instability of the ground before drilling.
The company said both wells produced encouraging results and confirmed that the coal seam gas system extends east of Nariin Sukhait, which forms part of the main Gurvantes project area. Gas levels were lower than in the TMK pilot field, which management attributes to shallower coal seams.
Work is ongoing to map and interpret the data in more detail and target the same coal seams at greater depths in future drillings where gas content is expected to be higher.
A third well was drilled in the pilot project area to collect more information. This well intersected thick, gas-rich coal seams similar to those seen in existing pilot wells. Core samples were collected and sealed in the field for gas testing.
Gurvantes spans 8,400 square kilometers in Mongolia’s South Gobi Desert, less than 50 kilometers from China’s Shivee Khuren border crossing and close to key Chinese gas infrastructure.
The region is known for its large coal deposits and is therefore ideal for coal seam gas production, as geological heat and pressure processes convert the organic matter in the coal into methane. The gas field contains 1.2 trillion cubic feet (Tcf) of contingent resources and offers significant upside potential; A potential resource of 5.3 Tcf is still waiting to be discovered.
Looking ahead, TMK has begun planning its 2026 drilling program to further accelerate depressurization and increase gas production. Reservoir simulation modeling has provided clear information on the optimal locations for these additional wells.
With near-record gas flows, new discoveries beginning and field-wide planning taking place, the TMK appears to be shifting gears in Mongolia’s South Gobi Basin. The project appears to be getting closer to becoming a commercial-scale production and punters will no doubt be watching closely.
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