TMK Energy's coal seam gas drilling makes its mark with fifth successful well

TMK has wrapped up its maiden exploration drill program at the Gurvantes XXXV project in Mongolia with all five wells intersecting thick intervals of gassy coal.

The final well – Snow Leopard 05R, which was tacked on to the original drill program to obtain additional information – intersected 41m of coal in the upper seam and 28m in the lower seam.

And while that is comparable to any of the other coal intersections in the earlier wells, drill stem testing in the upper coal seam has indicated that SL-05R has the highest permeability recorded in the project area to date.

Likewise, preliminary results from desorption samples indicate that all coal from a depth of greater than 200m contains moderate to high gas contents in both seams.

TMK Energy (ASX:TMK) noted that final analysis and interpretation of all data will progressively become available as testing for final gas contents, gas composition, and permeability results continues.

It has moved to advancing the pilot well program and the detailed planning and logistics required to deliver this proof-of-concept stage, which seeks to produce first gas to surface.

“It is pleasing to finish the initial exploration program on a high note with another successful well delivering excellent results,” chief executive officer Brendan Stats.

“A large amount of new data has been acquired that is invaluable in the design and implementation of the Pilot Well Program and of course, provide the additional technical data required to estimate our maiden Contingent Resource estimate due out at the end of this month.

“The project is gaining significant momentum and we are working hard to expedite the next stages, being to produce gas to surface and begin to prove up the vast area we have under licence.

“In conjunction with operations, we look forward to progressing commercial arrangements with our partner (Talon) and further delineating a commercial agreement with PetroChina pursuant to our existing MOU.”

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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.