TMK Energy hits thickest gassy coal body yet in lower seam deposit at Gobi CSG play
Soon, Talon Energy will reveal whether or not it funds the next US$3.15m for TMK's pilot plant
Source: Unsplash
Mentioned
KEY POINTS
- TMK Energy’s step out well, Snow Leopard 3-R, has hit an 80m thick coal seam at 455m depth
- Represents the largest intersection of gassy coal found in the entire 2022 exploration run
- Snow Leopard-5 continues down towards the lower seam; the Gurvantes XXXV play boasts a stacked coal deposit geology
TMK Energy (ASX:TMK) has hit its thickest intersection of gassy coal to date on-site the Gurvantes XXXV CSG acreage in Mongolia’s South Gobi, as part of the company’s 2022 Snow Leopard (SL) exploration run.
What the company has consistently found across all SL wells spud this year is that the southwestern pocket of its overall acreage overlies a two-tiered gassy coal system, with drills hitting coal at one level, going deeper, then hitting another further down.
A second well stepping out from SL-3 was recently spud, called SL-3R, and it is from that latter well today’s results are announced.
In short, TMK Energy has found that where SL-3R was perforated, the lower coal seam on-site runs at a total vertical width of 80m—an internationally significant CSG deposit.
Other CSG plays working with less: Management
“An 80m thick gassy coal seam of this quality is incredible, particularly when compared to developed projects wich coal seams an order of magnitude thinner at 8m - 14m,” TMK Energy CEO Brendan Stats said.
“This incredible coal thickness, all containing high gas, results in a very high resource concentration...we look forward to completing the exploration program and booking a maiden Contingent Resource.”
“Exploration results continue to exceed our expectations.”
That exploration program continues, with SL-5 heading towards completion, and flow testing of SL-3R on the horizon.
Talon Energy hits milestone
TMK Energy partners with Talon Energy (ASX:TPD) at Gurvantes, a company which shares its flagship assets between Mongolia and Western Australia.
Once either SL-3R or SL-5 is completed and/or flow tested, Talon Energy will thereby hit the end of its first stage in the farmout agreement it executed with TMK.
Talon Energy is committed to drilling four wells ahead to testing under stage one of that agreement.
Stage two of the agreement sees Talon fund TMK Energy to move towards the development of a pilot plant production well on-site to demonstrate the project’s economic potential, to the tune of US$3.15m in payments.
Talon is yet to notify whether or not it intends to proceed.
A look at TMK's existing prospective resource for the Gurvantes play. Its maiden Contingent Resource will allow for a more refined update to the numbers
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.
