TMK Energy adds a fifth well to its successful Snow Leopard Mongolian CSG campaign

TMK Energy (ASX:TMK) is to add a fifth well to its highly successful Snow Leopard drilling campaign on-site the Gurvantes XXXV project in the South Gobi desert region of Mongolia. 

The results from the pending fifth well will be incorporated into datasets that inform the maiden resource estimate for the project, set for delivery in October. 

Late last month, the company announced it had hit gas in its fourth Snow Leopard well. So far, every single well the company has spud has hit gas, meaning its exploration success rate technically sits at 100%. 

An extensive two-layered gassy coal seam system underground the company’s acreage has been confirmed; a step out well from SL-3 continues to assess the lower seam for a better understanding of composition. 

Partner Talon Energy agrees to fifth asset 

TMK partners with Talon Energy (ASX:TPD) at the project, and both companies have agreed to move ahead with SL-5. 

“We have committed to SL-5 following discussions with Talon Energy, given the relatively low cost and high value add that can be accomplished from an additional well, [we will proceed with drilling]” TMK CEO Brendan Stats said. 

“A fifth exploration well will complete a successful 2022 exploration drilling program.” 

100% success rate interests PetroChina 

Last month, TMK noted it has executed an MOU with Chinese state-owned energy giant PetroChina as the latter takes an interest in Gurvantes XXXV. 

TMK intends to sell natural shale gas into the Chinese market, which is forecast by the US Energy Information Administration (EIA) to climb in market share in the coming decades. 

To get its gas there, TMK needs pipelines into China. PetroChina, in turn, has no shortage of those. 

Projected growth of CSG (shale) energy into Chinese markets through to 2040 (Source: U.S. Energy Information Administration, International Energy Outlook 2017, China Development and Reform Commission, China Customs)

Disclaimer: Market Index helps small-cap ASX listed companies connect with Australian investors through clear and concise articles on key developments. TMK Energy was a client at the time of publishing. All coverage contains factual information only and should not be interpreted as an opinion or financial advice.