TMK Energy has secured a crucial regulatory tick for its pivotal Declaration of Discovery at the wholly owned Gurvantes XXXV coal seam gas project in Mongolia, opening the formal pathway towards an exploitation or production licence.
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Energy → secure → licence
Lodged on 2 October and accepted by Mongolia’s Mineral Resources and Petroleum Authority (MRPAM) on 15 October, the declaration covers all seven wells at the company’s Lucky Fox complex.
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declaration → lodge → complex
Made under the country’s petroleum laws, it moves Gurvantes XXXV from exploration into evaluation.
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it → make → evaluation
For TMK, this official stamp of approval marks a defining shift from proving what is in the ground to proving how it can be produced and sold.
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it → mark → ground
However, the company is keen to emphasise it does not establish commerciality or grant a production licence.
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it → emphasise → licence
Gurvantes XXXV spans 8400 square kilometres in Mongolia’s South Gobi Basin.
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XXXV → span → Basin
The project hosts an independently certified 2C contingent resource of 1.2 trillion cubic feet (Tcf) of coal seam gas across 60 square kilometres, with a further 5.3Tcf of best-estimate prospective resources across the wider project area.
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project → host → area
The Declaration of Discovery is the first step required to move from exploration to appraisal and eventually the booking of reserves and the grant of a production license.′TMK Energy chief executive officer Dougal Ferguson
Coal seam gas (CSG) production has two stages.
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production → require → stages
First, TMK pumps water from the coal seams to lower reservoir pressure.
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TMK → pump → pressure
Once it falls below a critical point, methane held on the coal’s surface desorbs - breaks free - and flows to the wells.
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methane → fall → wells
The seven-well pilot is testing whether gas flows can be sustained and repeated across the reservoir.
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flows → test → reservoir
In an update earlier this month, TMK reported October average output of 950 cubic metres a day, up from September’s 872 cubic metres a day, alongside September water production of 425 barrels a day.
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TMK → report → barrels
The company says gas is desorbing, with rates tracking towards levels it expects during the upcoming extended production test (EPT).
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it → say → test
TMK Energy chief executive officer Dougal Ferguson said: “This declaration and the subsequent lodgement of an appraisal program will allow the formal EPT period to commence, which will run for a minimum of 180 days, during which time we will commence the process of agreeing initial reserves, a field development plan and eventually a production license.”
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we → say → reserves
With an endorsed Declaration under its belt, TMK now has 90 days to lodge and agree a 2027 appraisal program with MRPAM, which it expects to submit in the coming months.
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it → endorse → months
Acceptance willfire the starting gun on the production test
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Acceptance → start → test
Meanwhile, TMK is pushing ahead with its 2026 work program, with a workover campaign to re-complete existing pilot wells and lift output, followed by a new production well.
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TMK → push → well
The campaign will determine whether lower-cost re-completions can boost gas flows ahead of and during extended testing.
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completions → determine → testing
Management expects the program to significantly increase production and add to the data needed to assess the project.
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program → expect → project
The final step in the announced pathway is an exploitation or production licence.
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step → announce → pathway
An unconventional petroleum licence in Mongolia can run for 30 years, with a possible five-year extension.
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licence → run → extension
The licence pathway could bolster TMK’s ambition of helping drive Mongolia’s energy-hungry economy.
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pathway → bolster → economy
The country’s ageing coal-fired power stations and reliance on electricity imports from Russia and China leave a strong case for more reliable domestic supply.
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stations → age → supply
At the same time, the nearby mining district offers potential local demand for the gas.
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district → offer → gas
Less than 20km from the Chinese border, Gurvantes also carries a longer-range opportunity: potential access to one of the region’s major gas markets, if a gas supply project and the required infrastructure can be delivered.
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project → carry → markets
TMK and local partner Dashvaanjil Group are developing a proposed 1-megawatt gas-to-power project that could use pilot gas to supply the company’s operations and potentially nearby industrial users, offering an early use for its gas as appraisal advances.
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appraisal → develop → gas
By formally declaring a discovery, TMK has moved its giant gas resource another step along the road from exploration to appraisal.
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TMK → declare → appraisal
The next proof point is whether the pilot can turn rising gas flows into the reserves, development plan and licence needed to unlock production.
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pilot → turn → production
Is your ASX-listed company doing something interesting?
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company → list → something
The Aporia
