TMK Energy intersects more gassy coals at Snow Leopard-2

TMK Energy has intersected a further 21m of gassy coals in the lower seam at its Snow Leopard-2 well in Mongolia, adding to the 70m already intersected in the upper seam.

Preliminary desorption test work has confirmed high gas content in the lower seam while gas composition sampling and gas chromatography returned high methane (averaging 97%) and low carbon dioxide (1.7%) in coal seam gas sourced from the upper seam.

Drilling has been completed and TMK Energy (ASX:TMK) is now completing downhole geophysical surveys in preparation for potentially completing further permeability testing on the coal intersections.

Once testing and rehabilitation work is completed, the rig will move to drill Snow Leopard-3, the third of four planned wells at the Gurvantes XXXV CSG Project.

“This has been another highly successful well in our maiden exploration drilling program at the Gurvantes XXXV CSG Project,” chief executive officer Brendan Stats said.

“The results to date are extremely positive and have exceeded our expectation with respect to the very thick coal intersections, high gas contents, exceptional gas quality, and excellent permeability results recorded over the upper coal seam in Snow Leopard-2.

“Our focus has now shifted to the fast tracking of the pilot production system and early commercialisation opportunities that now clearly exist given the highly encouraging results to date.”

Big gas potential near big gas customer

The four-well program, which is funded by fellow Aussie Talon Energy (ASX:TPD) under a two-stage farm-in worth more than US$4.5m, is aimed at converting the independently certified Prospective Resource of 5.96 trillion cubic feet of gas into higher confidence Contingent Resources.

Any commercial gas is likely to find a ready buyer in nearby China, which is hungry for more of the energy source.

This article was developed in collaboration with TMK Energy, a Stockhead advertiser at the time of publishing.

This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.