TMK bursting with energy ahead of initial South Gobi Basin coal seam gas drill
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Drilling at TMK’s Gurvantes XXXV coal seam gas (CSG) project in Mongolia’s South Gobi Basin is moments away with the rig en route.
The initial drill location has been surveyed by TMK Energy (ASX:TMK), even as the site camp is under construction.
At least four wells targeting known coals seams within the CSG depth window will be drilled in the current program – fully funded by fellow Aussie Talon Energy (ASX:TPD) which is pumping in more than US$4.5m under a two-stage farm-in to Gurvantes XXXV.
The drill program is aimed at converting the independently certified Prospective Resource of 5.96 trillion cubic feet of gas into higher confidence Contingent Resources.
Achieving this will be a key step in establishing a project that not only shares a border with China – one of the world’s largest markets for gas – but as the global market faces potentially permanent shifts in energy sourcing.
“Operations are moving ahead on schedule, and we are looking forward to the drilling rig arriving on site in the next few days and commencing the initial drilling phase of this project,” chief executive officer Brendan Stats said.
“The initial drilling program is designed to deliver the key data we require to significantly increase our confidence in the potential of the Nariin Sukhait area and convert some of our Prospective Resources to Contingent Resources.”
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.