TMK gets to work on third gas well at Mongolian project

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

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