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.
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.
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