TMK adds finishing touch to Mongolia drilling
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The success of its four-well exploration program at the Gurvantes XXXV CSG project has inspired TMK to add a fifth low-cost well to gather additional information.
The decision to drill Snow Leopard-05 well at a cost of just $100,000 to provide further data on both the upper and lower coal seams came about due to the efficient drilling of SL-04 and the opportunity to use the current rig.
SL-05 will be drilled by TMK Energy (ASX:TMK) to a depth of about 650m in a location midway between SL-02 and SL-04 once SL-03R, which targets the lower seam adjacent to where the upper seam was intersected in SL-03, is completed.
Results from all five exploration wells will be incorporated into the dataset to determine the maiden contingent resource assessment which is expected to be completed in October.
“With the excellent results achieved to date and the much-improved performance of our new drilling contractor, we have taken the opportunity to add a fifth exploration well which will complete a successful 2022 exploration drilling program,” chief executive officer Brendan Stats said.
“We have committed to SL-05 following discussions with our partner, Talon Energy, given the relatively low cost and high value add that can be accomplished from an additional exploration well, the results of which will feed directly into our maiden contingent resource estimate and the planning of the pilot well program which is currently underway.”
All four earlier wells had intersected coals with moderate to high gas contents.
Talon Energy (ASX:TPD) is earning up to 33% working interest in the project by spending US$4.65m under a two-stage farm-in – US$1.5m for the initial exploration program and US$3.15m for the pilot well program being planned for later this year.
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.