Natural Gas

TMK, Talon Energy confirm dual coal seams at Snow Leopard-2; SL-3 on the radar

Wed 08 Jun 22, 11:23am (AEST)
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Key Points

  • TMK Energy and partner Talon Energy has confirmed the existence of a second 20m thick coal seam located below an overlying 70m thick body
  • Findings confirm suspicions of geological team, meaning the company now sits on a 90m thick gassy coal seam at Snow Leopard-2
  • Following the completion of surveys, drill rig will move to begin spudding Snow Leopard-3

TMK Energy (ASX:TMK) and project partner Talon Energy (ASX:TPD) continue to post strong results from the recently spud Snow Leopard-2 on site the partnership's Gurvantes XXXV acreage in the Mongolian South Gobi as the partnership confirm the existence of a second lower coal seam bearing gas.

The confirmation of a 21 metre thick lower seam at SL-2 means the company has intersected an aggregate 91 metre thick coal seam with high gas contents in both seams. 

Last week, the company confirmed the deposit had a millidarcy value indicating coal can easily flow through the rock body. 

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

(Source: TMK) TMK CEO and Ganzorig Vanchig and Talon Energy's David Casey at SL-2
(Source: TMK) TMK CEO and Ganzorig Vanchig and Talon Energy's David Casey at SL-2

Snow Leopard-3 coming up next 

SL-2 has reached its total depth of 540 metres with downhole surveys ongoing. Full results for both seams are still pending. 

The partnership is wasting no time moving onto Snow Leopard-3, the next of a planned four well program for the CSG project. 

If Snow Leopard-3 intersects a similar geology to that encountered at the site of SL-2, the company is likely to be able to progress ahead with its plans for a pilot plant construction in the fourth quarter of the 2022 calendar year. 

With the coal bodies at SL-2 lying at depths of only half a kilometre, the deposit at SL-2 is relatively shallow for an onshore project (deepwater offshore projects can easily see drill depths exceeding 2 kilometres.) 

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. 

A pilot plant led by the partnership is planned for later in the year at which time Talon Energy will assist in the provision of a further US$3.15m. 

TMK Energy's three month charts compared to the energy index
TMK Energy's three month charts compared to the energy index
TMK was a Market Index client at the time of publishing. All coverage contains factual information only and should not be interpreted as opinion of financial advice.

 

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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