TMK’s got a bead on its future coal seam gas exploration in Mongolia

TMK Energy has completed the acquisition of 2D seismic across discovered coal deposits in the northern and southern regions of its Gurvantes XXXV coal seam gas project in Mongolia.

The two 10km 2D seismic lines will help with the mapping of coal seams exposed at shallow depth within highly prospective areas outside the 1.2Tcf best estimate Contingent Resource defined by the successful 2022 exploration drill program.

Design, engineering work and tendering for TMK Energy’s (ASX:TMK) key pilot well program is also nearing completion.

“Following the outstanding results achieved to date and the delivery of an initial 1.2TCF in contingent resources from the 2022 exploration drilling program, we are already planning for the 2023 exploration program with the completion of this small but targeted seismic acquisition,” chief executive officer Brendan Stat said.

“This new seismic data will help us refine our future drilling locations targeting the already significant prospective resources already independently assessed by NSAI.

“Our immediate focus is the finalisation of the engineering, design and tendering for the pilot well program which we expect to commence in early 2023 and is designed to demonstrate our proof of concept by flowing gas to surface at commercial rates.

“The 2023 exploration drilling program, to be completed in parallel with the initial pilot well program, aims to continue to demonstrate the vast potential and scale of the Gurvantes XXV Project.”

Seismic acquisition

The seismic lines are aimed at defining future exploration locations to further de-risk the broader undiscovered 2U Prospective Resource of 5.96Tcf.

The first 10km 2D seismic line was acquired across the Noyon Syncline field in the north of the Gurvantes XXXV Project area, where coal units have been mapped on both the north and south limbs of a broad syncline striking east-west for over 80km.

The second 10km 2D seismic line was acquired in the Khukhuzokh field targeting coal units exposed at surface, which is interpreted to be an extension of coal units from the Nariin Sukhiat field that was the focus of this year’s successful drilling program.

Pilot well program

TMK’s planned pilot well program will consist of three production wells drilled in close proximity to the Snow Leopard-02 (SL-02) well, which returned spectacular results.

Subject to partner Talon Energy exercising its option to proceed to Stage 2 of its farm-in agreement, the pilot program will be primarily funded by Talon.

Drilling is expected to begin 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.