TMK has revealed that drilling in Mongolia has a coal seam gas Contingent Resource of 1.2Tcf at its Gurvantes XXXV project. Poc via Getty Images.
Mining
TMK’s highly successful drill program at its Gurvantes XXXV project has delivered Mongolia’s largest coal seam gas Contingent Resource of 1.2Tcf.
The targets of the 2022 drill program with the overall 1.2 trillion cubic feet resource confirmed by independent top tier international reserves and resources certifier, Netherland, Sewell & Associates.
The estimation of a first-ever Contingent Resource for the Nariin Sukhait area also brings a far greater degree of certainty to TMK Energy (ASX:TMK) as they represent discovered accumulations of gas compared to the undiscovered risked 2U Prospective Resource of 5.96Tcf which was just previously thought to be present at the project.
Incidentally, the Nariin Sukhait contingent resource has also delivered a 9% increase in combined Contingent and Prospective resources for the entire 8,400km2 project.
“This maiden Contingent Resource of approximately 1.2 TCF (2C) is a fantastic result which demonstrates the world class potential of the Gurvantes XXXV CSG Project both in terms of size and quality,” chief executive officer Brendan Stats said.
“The ability to define such a material maiden contingent resource after only commencing our first and relatively small drilling program in March this year, demonstrates the quality of the asset, and the ability to advance the project quickly, adding significant value for a relatively modest expenditure.”
He added that the Contingent Resource estimate exceeded expectations and provided the company with confidence in the scale and potential commerciality of the project.
“We are now focussed on the pilot well program which aims to flow gas to surface and will be another huge step forward in demonstrating the commerciality of Project,” he added.
While the five Snow Leopard coal seam gas wells intersected thick intervals of gassy coals in both Upper and Lower seams, the 2C Contingent Resource comes solely from the Upper Coal Seam due to the company’s success in data gathering and recording good permeability tests.
No 2C Contingent Resources were ascribed to the Lower Coal Seam as TMK was only able to obtain minimal permeability data though NSAI have ascribed a significant quantity (417Bcf) to the high estimate 3C category as upside in the event that it can be shown to have adequate permeability and/or pilot production data from future drilling campaigns.
Besides exceeding the company’s pre-drill expectations by a significant margin, the 2C Contingent Resource is also the largest of any CSG project recorded to date in Mongolia.
With the stirring success of its 2022 drill program, the company is now planning a significant 2023 exploration program with the aim of converting more of the remaining Prospective Resources into Contingent Resources, along with conversion of 3C resources into the 1C or 2C category.
It is also well advanced in the planning for its initial pilot well program, which is expected to commence drilling in the first quarter of 2023.
This article was developed in collaboration with TMK Energy (ASX:TMK), 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.
Mining
Mining
Mining
Get the latest Stockhead news delivered free to your inbox.
