? Further improvement in reservoir pressure confirmed by latest
pressure build up tests completed at LF-01 and LF-04 wells at the
Gurvantes XXXV Pilot Well Coal Seam Gas (CSG) Project in Mongolia
? Reservoir pressure closely aligning with the simulation model
confirming the Pilot Well Project remains on target to reach critical
desorption pressure
TMK Energy Limited (锟絋MK锟� or the 锟紺ompany锟�) is pleased to announce it has
completed an additional pressure build up test at the LF-01 and LF-04 wells at its 100% owned
Gurvantes XXXV Coal Seam Gas (CSG) Project in Mongolia, which has confirmed reservoir pressure
continues to improve at the Pilot Well Project location.
A pressure build up test was recently completed at LF-01 and LF-04 which were shut in for 14 and 8
days respectively, confirmed the reservoir pressure has again improved since the previous pressure
build up test results reported in November 2025, and that the upper coal seam reservoir at the Pilot
Well Project is continuing to decline towards the estimated critical desorption pressure (see Figure 1
below).
Desorption pressure in a coal seam is reached when enough formation water has been pumped out
to lower the reservoir pressure to a point where methane can begin to detach from the coal matrix.
Under natural conditions, coal holds gas tightly through adsorption, with water pressure helping keep
the gas bound to the coal surface. Once the pressure drops below the coal锟絪 desorption pressure,
methane molecules no longer remain fully adsorbed and start to migrate from the coal matrix into the
cleat system. From there, the released gas can flow toward the wellbore and be produced. This
transition锟絝rom water-dominated to gas-dominated flow锟絠s a critical stage in coal seam gas
development because it marks the point at which significant gas production becomes possible and
ultimately commercial.
The recorded pressures are aligning closely with the recently developed reservoir simulation model.
The reduction in pressure recorded since the last pressure build up test in November 2025, closely
correlates with the simulated pressures and confirms that the Pilot Well Project remains on target to
reach critical desorption.
A simulation has also been run to model the effect that is predicted if additional wells were to be
drilled nearby the existing Pilot Well Project. The results of the simulation forecast suggest that not
only will the desorption pressure be reached quicker, but that gas production from the pilot well
complex could support a 2-5MW power generation project this year.
Mr Dougal Ferguson, TMK Energy锟絪 Chief Executive Officer commented:
锟絋his is yet another key data point which demonstrates that the coals within our Project area
are being depressurised and that measurable progress is being made which will ultimately
deliver much higher gas rates once the desorption pressure is reached.
A large body of technical work is nearing completion that clearly demonstrates how we see
the development plan unfolding, which together with a formal partnering process
commencing after Chinese New Year, provides a clear pathway forward for the Company.锟�
For the purposes of ASX Listing Rule 15.5, the Chief Executive Officer has authorised for this
announcement to be released.