Energy

TMK gets to work on third gas well at Mongolian project

Fri 17 Jun 22, 2:21pm (AEST)
Traditional yurts set up on Mongolian grassland
Source: Unsplash

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Key Points

  • TMK Energy has commenced drilling its third Mongolian CSG well at the Gurvantes XXXV CSG project
  • Snow Leopard-3 spud follows news Snow Leopard-2 intersected 91 metres of gassy coals earlier this month
  • SL-3 to perforate same coal formations intersected by SL-1 and SL-2

TMK Energy (ASX:TMK) has today commenced drilling the third of four planned wells onsite its Mongolian acreage at the company’s flagship CSG project. 

Earlier this month, the company reported a 91m thick coal body at Snow Leopard-2. Initial test results indicate high methane contents (the key constituent of natural gas) and the easy flow of gas through rock. 

Snow-Leopard 3 is targeting the same coal bodies. 

TMK joins Talon Energy (ASX:TPD) on the project. 

A map of Mongolia locating the Gurvantes project
A map of Mongolia locating the Gurvantes project

SL-3 currently at 30m depth 

Management notes results from SL-3 upon completion will be compared with SL-1 and SL-2 to further delineate the resource and log the gas characteristics encountered at Gurvantes XXXV. 

Millidarcy metre values for the coal bodies intersected in SL-2, a measure of how easily gas can flow through rock, reflected a desirable coal deposit allowing the free flow of gas molecules underground. 

Those results suggest the stimulation and extraction of gas is likely to present a commercially feasible prospect for the company's CSG production.

Talon to earn 33% interest 

Talon continues to earn a 33% working interest in the project and assisted in the provision of US$1.5m to execute the four well program. 

The partnership intends to establish a pilot plant on-site at which time Talon Energy will assist in the provision of a further US$3.15m.

TMK is now fast tracking a pilot well proof of concept process with operations expected to commence later in 2022. 

TMK's three month charts compared to the energy index
TMK's three month charts compared to the energy index

 

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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. Email Jon at [email protected].

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