- TMK Energy (TMK) begins drilling the Snow Leopard-2 well, located at the Gurvantes XXXV coal seam gas project in Mongolia
- The energy stock plans to drill the well to a 600-metre depth and is targeting the same coal formations intersected in the Snow Leopard-1 well located five kilometres away
- This drilling is part of a four-well program targeting thick coal seams and the data will be used to support a pilot well program expected to begin in the second half of 2022
- Company shares are up 10 per cent to trade at 1.1 cents
TMK Energy (TMK) has begun drilling the Snow Leopard-2 (SL-2) well, located at the Gurvantes XXXV coal seam gas (CSG) project in Mongolia.
Snow Leopard-2 is the second of a four-well maiden drilling program targeting thick coal seams.
TMK recently completed drilling and testing the Snow Leopard-1 (SL-1) well which was completed to a depth of 675 metres and intersected 60 metres of net coal.
Since then, the drill rig underwent routine maintenance before being moved to the SL-2 site, which is approximately five kilometres east of SL-1.
TMK Energy plans to drill SL-2 to a total depth of roughly 600 metres and is targeting the same coal formations intersected in the first well. The SL-2 well will be cored, and any significant coal seams intercepted will be sampled and subjected to the same testing as the first well.
Once SL-2 has been completed, two more holes will be drilled over the next two to three months.
“The results from the first well, Snow Leopard-1, are very encouraging and the new data that will be gathered from Snow Leopard-2 will provide a further data point to allow us to continue to prove up the potential of the Nariin Sukhait area within the highly prospective Gurvantes CSG project,” CEO Brendan Stats said.
Once the program has wrapped up, TMK will use the data to support a pilot well program designed to further de-risk the asset and demonstrate a proof of concept for what could be a significant gas resource development.
Additionally, the company expects the data will allow it to convert a portion of the independently certified 5.96 trillion cubic feet of gross prospective resource into a maiden contingent resource later this year.
The energy stock said the pilot well program is on track to begin sometime in the second half of the year.
Company shares were up 10 per cent to trade at 1.1 cents at 1:59 pm AEST.