TMK Energy Limited (ASX:TMK) Reports Record Gas Production in January
Gas Production Highlights
TMK Energy Limited (ASX: TMK) reported a nearly 300% increase in total gas produced in January 2025 compared to December 2024. The monthly gas production reached almost 8,000m³, marking a 40% rise over the previous record.
Pilot Project Performance
The Gurvantes XXXV Coal Seam Gas Project’s pilot production wells (LF-04, LF-05, and LF-06) commenced gas production on January 10, 2025. Despite not all wells being fully operational throughout the month, the project’s performance aligned with expectations, with the LF-02 well achieving record production rates, more than quadrupling its historical gas rate.
Water Production Increase
January saw the total water production rate increase to approximately 1,000 barrels per day from 300 barrels per day prior to the new wells’ production. The additional water pumping capacity at the Plot Well Project positively impacted existing wells, enhancing overall performance.
Future Outlook
While it remains early to predict the sustainability or further increase of current gas flows, TMK Energy maintains its forecast for a material increase in gas rates by late Q1 or early Q2 2025 based on the current production data.
Executive Comments
Chief Executive Officer Mr Dougal Ferguson stated, “Despite not having all the new wells on production for the whole month of January 2025, the Project still managed to deliver a record month of production. The positive signs we are observing indicate that the Project remains well on track to meet our objective of delivering a commercially significant outcome this year. This enormous coal seam gas resource is still at an early stage of evaluation, so it remains difficult to predict if or when commercial gas flow rates will be achieved, however we will continue to provide shareholders with regular updates as new milestones are reached.”
Motley Fool contributor Lianne Eastty has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
This article was generated using GPT-4o mini, a Large Language Model (LLM), to generate summaries of investing news. While AI is generating the content, we know better than to blindly trust our future robot overlords, and every article is edited and fact-checked by an editor holding the appropriate credentials. The Motley Fool Australia stands behind the work of our editorial team and takes ultimate responsibility for the content of everything published by The Capital Club.