TMK, Talon Energy confirm dual coal seams at Snow Leopard-2; SL-3 on the radar
TMK Energy (ASX:TPD) and partner Talon (ASX:TPD) confirm second coal seam at site of SL-2
Source: Unsplash
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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
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.
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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.
