TMK spuds third well at Mongolian coal seam gas project

With two successful wells already under its belt, TMK has now spudded a third coal seam gas well at its Gurvantes XXXV project in Mongolia.

Snow Leopard-3 is the third of four wells that the company is drilling as part of its initial exploration program targeting thick coal seams within the CSG window.

Given the strong results from the first two wells – with Snow Leopard-2 intersecting 91m of gassy coals in the upper and lower seams – there’s every reason for TMK Energy (ASX:TMK) to believe that the new well will provide yet another important data point in the overall delineation of the resource and the gas characteristics of the coal seams.

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.

Additionally, detailed planning for the pilot well program to further derisk the project and prove its ability to produce coal seam gas at commercial rates is well underway with operations expected to start later this year.

“We are pleased to announce that drilling is underway on the third of four wells to be drilled in the current program,” chief executive officer Brendan Stats said.

“The excellent results from the first two wells Snow Leopard-1 and Snow Leopard-2 give us a high degree of confidence in our geological understanding of the Project and our ability to continue to prove up the potential of the highly prospective Gurvantes Coal Seam Gas project.”

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.