TMK Energy's single committed new well, LF-08, awaits its drilling start in Mongolia

TMK Energy (ASX:TMK) plans to drill LF-08, a production well at its Gurvantes XXXV coal seam gas project in Mongolia. The company says it will be drilled in an up-dip location and is expected to become an early gas producer. The company's last update, on 3 September, said drilling was waiting on equipment to arrive. It has not given a firm spud date.

Why it matters

Gurvantes is TMK's main asset, and it owns 100% of it. The project carries a contingent gas resource of 1,214 bcf (P50), restated in the company's July 2026 presentation. Output from the seven-well pilot is tiny by comparison. August gas averaged 810 m3/day (about 28,600 scfd), up roughly 4% on July and close to the March record.

If LF-08 produces gas early, it would add to that output. The company has not said how much it expects the well to produce.

What has changed

The plan has narrowed and the timing has slipped:

• Drilling was first flagged for July, then pushed to August, and on 26 August the company said it would start from late September.
• TMK signed a contract with Major Drilling for up to three wells but committed to only one, LF-08. An earlier plan had called for three new wells.
• The 2026 program now centres on re-completing existing wells. Work on LF-02, LF-03 and LF-06 was due to start in September.

The company's new Chief Operating Officer, Steve Skinner, is focused on the re-completions.

Funding and ownership

TMK reported $5.4 million in cash and no debt at 30 June, and describes the 2026 program as fully funded. A July presentation showed about 269 million shares and a market value of $40 million at $0.15 a share.

The company also holds minority interests of 5% to 50% in US prospects. Their latest estimates date from 2008 to 2022. The company has not disclosed its interest in one of them, Pruitt et al.

Other items to watch

A final investment decision on a 1MW gas-to-power project with Dashvaanjil Group is planned for October, with operation targeted by December. The company earlier targeted the start of Mongolian winter for first power. Whether LF-08 has spudded, and how the re-completions perform, have yet to be confirmed in the company's announcements.