TMK does it again, hitting thick, gassy coals for 6km

TMK is now three for three with its Snow Leopard-3 coal seam gas well intersecting 47m of gassy coal in the upper seam at its Gurvantes XXXV project in Mongolia.

With gas desorption testing and preliminary results indicating that the upper coal seam contains high gas contents – essential for achieving commercial production of CSG, the company has now intersected thick gassy coal over a 6km strike.

Importantly for TMK Energy (ASX:TMK), the result demonstrates the continuity of the coal formations while providing a good geological understanding of the Narrin Sukhait area.

It is also a good sign that the company could convert a significant portion of the independently certified Prospective Resource of 5.96 trillion cubic feet of gas into higher confidence Contingent Resources.

As if that wasn’t enough, the well is currently at a depth of 320m and is drilling ahead to intersect the lower coal seam that is interpreted to exist at this location.

Success will mirror Snow Leopard-2, which had intersected 91m of gassy coals in the upper and lower seams.

“This has already proven to be yet another highly successful well in our maiden exploration drilling program at the Gurvantes XXXV CSG project,” chief executive officer Brendan Stats says.

“The results to date from all three wells are extremely positive with all key technical parameters being coal thickness, gas contents, gas composition and permeability, all meeting or exceeding parameters from developed coal seam gas projects around the world.

“The results from the multiple wells over a 6km strike, demonstrate the enormous potential and scale of our project.”

Snow Leopard-3

While drilling is still in progress, the results seen to date are consistent with those observed in Snow Leopard-1 and Snow Leopard-2 located about 3km to the west and east respectively, all of which have a very thick upper coal seam with strong indications of high gas contents.

Downhole geophysical surveys and permeability testing have been successfully completed over the upper coal seam and included both Drill Stem Testing (DST) and Injection Fall Off Testing (IFOT).

Once operations on Snow Leopard-3 are completed, TMK and its partner Talon Energy (ASX:TPD), which is earning a 33% working interest in Gurvantes XXXV by spending US$4.65m under a two-stage farm-in, will move on to drill the fourth and final well in the current program.

This is designed to gather important data such as coal thickness, gas contents, gas composition and permeability that will enable estimation of contingent resources and aid in the design of a pilot production program.

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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.