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- TMK Energy (TMK) sees “excellent” final gas content results for the SL-02 and SL-03 wells at the Gurvantes XXXV coal seam gas project in Mongolia
- Results from SL-02 averaged 9.5 tonnes per cubic metre and SL-03 averaged 9.8 tonnes per cubic metre and were “notable” due to the shallow depths
- Studies from a previous well indicate the coal seams are highly saturated which potentially means gas production occurs soon after bringing the well online and increases the overall gas recovery
- CEO Brendan Stats says exploration continues to “exceed expectations” and TMK is working towards completing the initial exploration program by the end of the year
- Company shares are in a halt and last traded at one cent each on August 12
TMK Energy (TMK) has seen “excellent” final gas content results for two Snow Leopard wells at the Gurvantes XXXV coal seam gas project in the South Gobi Basin in Mongolia.
Results from SL-02 averaged 9.5 tonnes per cubic metre and SL-03 averaged 9.8 tonnes per cubic metre.
The company said these results are “particularly notable” due to the shallow depths of around 170 to 300 metres, from which the samples were collected.
Recently, TMK completed adsorption isotherm analysis and petrography studies of coal samples from the SL-01 well.
The studies reportedly indicated that the coal seams are highly saturated with gas saturation value results ranging from 78 to 92 per cent with an average value of 84 per cent.
TMK said gas saturation is an important parameter which impacts the production profile of the wells and high gas saturation generally means gas production occurs soon after bringing the well online and increases the overall gas recovery.
CEO Brendan Stats said exploration continues to “exceed expectations.”
“It is rare to get a combination of thick shallow coal with high gas content and high permeability, which is why the results to date are exceptional,” he said.
“These parameters suggest the initial development will be relatively simple, consisting of cheap shallow vertical wells in the first instance, with the deeper coal seams to be targeted later in the project development phase.”
TMK is currently in process of re-drilling SL-03 to intersect the lower seam at this location. The well is currently at a depth of 260 metres having intersected the upper coal seam.
Mr Stats said TMK will work towards completing the initial exploration program, with an initial contingent resource and progressing the pilot well program stage before the end of the year.
TMK shares are in a halt and last traded at one cent each on August 12.
