Enter the Snow Leopard: TMK is all over its first Mongolian coal seam gas drill

TMK has spudded the first of four coal seam gas exploration wells, targeting thick coal seams at its Gurvantes XXXV project in Mongolia.

Snow Leopard-1 is expected to be drilled to a total depth of about 650m over a four week period and will be cored with intercepted coal seams sampled and subjected to gas desorption and gas adsorption testing.

This will provide TMK Energy (ASX:TMK) with important data on gas content, saturation, and composition.

Downhole geophysical surveys and drill stem tests on selected intervals are also planned to acquire further data on coal seam thickness and characteristics.

Following completion of Snow Leopard-1, the company will drill a further three holes spaced about 3.5km apart over a three to four month period.

These drill holes will continue to target the highly prospective coal seams identified at Nariin Sukhait from existing exploration data and coal mining activities.

“We are excited to commence our maiden drilling program at the Gurvantes XXXV CSG Project which represents an important step in what we expect will be the discovery and evaluation of a world class CSG project in Mongolia,” chief executive officer Brendan Stats said.

“The aim of the drilling program is to acquire definitive data on the thickness, gas content and permeability indicators of the targeted coal seams in order to demonstrate the potential of the project to supply reliable, cleaner energy to both Mongolia and nearby energy hungry China.”

Planning ahead

Data from the four well program will enable TMK to convert a portion of its current 5.96 trillion cubic feet of gas prospective resource into a maiden contingent resource for the Nariin Sukhait area in the second half of 2022.

It will also guide the company in the design and location of its initial pilot well program expected to commence in the second half of 2022.

The current drilling is funded by partner Talon Energy (ASX:TPD) under an existing US$4.65m ($6.46m) farm-in agreement.

Initial funding of US$1.5 million is allocated to the current four well drilling and testing program.

The second stage of funding, being US$3.15 million, is currently budgeted towards the pilot well program being planned for later this year, should Talon elect to proceed with the second stage of the farm-out agreement.

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.