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TMK Energy (ASX:TMK) – one of very few Australian listed companies that has actually made Mongolian gas exploration work, at least for now – has announced successful gas flows from its three latest wells; LF-04, LF-05, and LF-06 (“new wells.”)
TMK is perhaps most notable for being the only stock alongside Jade Gas (ASX:JGH) that continues to operate in the Gobi after counterparts Talon Energy (now de-listed) and Elixir Energy both ditched the region.
The new wells join an original three pilots from the same tranche that gives TMK Energy six new wells to firm up heading into the meat of 2025.
With all six now flaring gas and water cuts dropping, the company is set to continue doing what it always has – developing a gas resource in the vast Mongolian desert that could, one day, connect to relatively nearby Chinese cities on the border.
Of course, the company is battling with lower liquidity than what it enjoyed back in the early 2020’s. With shares at two-tenths of a cent – and the company’s biggest problem, 9.3B on issue – the seemingly high volumes for TMK turnover reveal a quiet stock.
As of 11AM Sydney time on Monday, some $35,000 worth of shares had traded hands.
Not terrible, but not necessarily great, really.
Then there’s another issue: The energy company noted that current flows are “not yet considered commercial.” This conforms to something of an existing pattern for TMK, which is yet to strike (or get to surface) the mammoth quantities its vast acreage offers tantalising hopes for.
In a word, the company is battling uphill against investor fatigue (as well as having capital raised itself into a corner.) The company did note on Monday it has doubled (not yet commercial) production volumes.
“As expected, the total field production rate has more than doubled and we are clearly seeing the original three pilot wells being positively affected by the new wells now on production,” TMK CEO Dougal Ferguson said.
TMK last traded at 0.2cps.
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