Talon pens in large 5.96Tcf maiden CSG resource in Mongolia
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Talon’s Mongolian coal seam gas project has received a major leg-up after an independent assessment estimated that it hosts a best case prospective resource of 5.96 trillion cubic feet.
Adding further interest, the maiden prospective resource by highly regarded international petroleum consultants Netherland Sewell & Associates covers just 2,235sqkm of the 8,400sqkm Gurvantes XXXV permit area.
Talon Energy (ASX:TPD), which is earning a 33% stake in Gurvantes XXXV by paying 100% of this year’s agreed initial exploration work program up to US$1.5m, adds that this equates to a best case resource concentration of 12.4 billion cubic feet per sqkm.
“This is a very exciting first up result, particularly when considered in the context of the relatively small area covered by these resources and the resource concentration that it represents,” managing director David Casey said.
“With a best case concentration of 12.4Bcf/sqkm for the prospect area, Gurvantes would be one of, if not the most, prolific and resource intensive coal seam gas provinces in Mongolia, which in large part is due to the quality and quantity of Telmen’s data set from over 1,800 drillholes.
“It augurs particularly well on the likely prospect of seeing a significant conversion of this Resource to the contingent category on the back of this year’s exploration program.
“By any metric this is a fantastic return on our initial and ongoing investment in Mongolia, and particularly when considering the size of the prize and the proximity of Gurvantes to major pipeline infrastructure across the border in China, which is the fastest growing market for gas anywhere in the world.”
Talon plans to drill at least four core holes this year as part of the initial exploration work program.
Talon reached the agreement to farm-into Gurvantes XXXV with Telmen Resource JSC in February this year.
The project is situated less than 20km from the Chinese-Mongolian border and close to the extensive Northern China gas transmission and distribution network.
Gurvantes XXXV is also the closest of Mongolia’s CSG projects to China’s West-East Gas Pipeline and is close to several large-scale mining operations with high energy needs.
Taken together, it means the project is ideally placed for future gas sales to satisfy both local Mongolian, and Chinese, energy requirements.
This article was developed in collaboration with Talon 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.