Best estimate gas reserves for Talon, TMK’s Mongolian CSG play over 1 trillion cubic feet

Wed 09 Nov 22, 11:05am (AEST)
A statue of Genghis Khan located in Mongolia
Source: Unsplash

Key Points

  • Talon Energy and TMK Energy, partners at the Mongolian Gurvantes XXXV CSG play, post contingent (2C) resource circa 1.2TCF
  • Results come 9 months after drilling first started and following rip-roaring success across TMK’s Snow Leopard campaign
  • Talon hold an option that will allow it to acquire 33% of Gurvantes production contract per Mongolian mining, energy laws

Talon Energy (ASX:TPD) and TMK Energy (ASX:TMK) have today posted a joint announcement highlighting a freshly minted 2C gas reserves estimate for the partnership’s Gurvantes XXXV project. 

All in all, the company’s upper-confidence range estimate for the play see Gurvantes boasting a mammoth 1.2TCF of potentially recoverable gas to sales. 

The reserve estimate was published by private international certification specialist Netherland, Sewell and Associates. 

Snow Leopard

The reserves follow the commencement of the Snow Leopard drilling campaign at Gurvantes which largely fell into TMK’s remit. 

Gas was hit across all wells perforated and step-out wells were on the whole successful. 

The Gurvantes project is located nearby the Chinese border (relatively) with that region’s natural gas use forecast to rise into the 2040s by bodies like the IEA and even the US Energy department; let alone Chinese data itself. 

Largest gas resource in Mongolia 

“The exploration success at the Gurvantes Project to date has far exceeded Talon’s initial expectations and has led to what is now the largest independently certified Contingent Resource for a coal bed methane project in Mongolia, of any ASX listed company,” Talon MD Colby Hauser said. 

“These results bode well for the upcoming Stage 2 pilot well program, which is being designed to further understand the commerciality of this world class resource.” 

“With the certification of the Contingent Resource at Gurvantes, and a better understanding of the project’s potential, Talon is now in a far better position to make a decision on its continuing investment in the project.”

Talon Energy retains an option to boost its stake in the Gurvantes project up to 33%. 

TMK's six month charts
TMK's six-month charts.


Written By

Jonathon Davidson

Finance Writer

Jonathon is a journalism graduate and avid market watcher with exposure to governance, NGO and mining environments. He was most recently hired as an oil and gas specialist for a trade publication.

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