TMK’s maiden coal seam gas drilling effort continues to highlight the strong potential of its Gurvantes XXXV coal seam gas project in Mongolia.

Its Snow Leopard-2 well – the second of four wells in the program – intersected 70m of coal with high gas content, according to preliminary gas desorption tests.

However, the real takeaway is that this gassy coal intersection sits just 167m from the surface in the upper coal seam, which makes the high gas content even more unusual as shallow coals typically have lower gas content and saturation.

There is also potential for TMK Energy (ASX:TMK) to encounter more gassy coals in the deeper coal seam that is interpreted to exist in this location.

Snow Leopard-2 is currently at a depth of 360m and will be drilled to a total depth of about 600m.

Downhole geophysical surveys and downhole permeability testing are also planned to be completed at the well to acquire further data on coal seam thickness and characteristics.

“The results to date from Snow Leopard – 2 are highly encouraging, having already intersected thick shallow coal with initial gas desorption results indicating high gas contents, which is an exceptional result considering the relatively shallow depth of the upper coal seam,” chief executive officer Brendan Stats noted.

“The results so far from both SL-02 and SL-01 (drilled 5 kms to the west), support our geological understanding of the Nariin Sukhait area and demonstrate the continuity of the targeted thick coal formations along strike which is one of the key objectives of the 2022 exploration program.

“With a 100% success rate from the two wells drilled to date, our confidence in being able to prove up and convert the already independently certified prospective resources into contingent resources is growing and we look forward to this work being completed at the end of the 2022 drilling program.”

Big gas potential on China’s doorstep

The four well program targeting known coals seams within the CSG depth window is 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.

Confirming a gas resource of this size is potentially lucrative given the project’s proximity to gas hungry China.

Snow Leopard-1 intersected a total of 60m of gassy coal though testing faced several operational challenges associated with the test equipment, hole conditions and testing methods.

This has led the joint venture to mobilise further equipment suitable for a range of permeability testing methods to site.

 

 

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.

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