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TMK Energy (ASX:TMK) strikes shallow gassy coal in Mongolia

ASX News, Energy
ASX:TMK      MCAP $23.64M
23 May 2022 15:34 (AEST)

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Junior oil and gas play TMK Energy (TMK) has struck 70 metres of gassy coal from the latest bout of drilling at its Gurvantes XXXV coal seam gas project in Mongolia.

The company this morning said its Snow Leopard-2 (SL-02) well in the South Gobi Basin region intersected the coal from 167 metres deep.

TMK sampled the coal core from the hole for gas desorption testing, and the company said preliminary results indicated high gas contents in the coal.

The company is still drilling in SL-02, currently at 360 metres deep to target a deeper coal seam in the area. The company plans to drill this hole to 600 metres to strike the same coal formations intersected in the previous hole at the project, SL-01.

At the same time, TMK is planning to complete some downhole geophysical surveys and permeability testing at SL-02 to gather more data on the coal seam thickness and characteristics of the hole.

TMK CEO Brendan Stats said the results from SL-02 were “exceptional” considering the relatively shallow depth of the upper coal seam.

“The results so far from both SL-02 and SL-01 (drilled five kilometres to the west) support our geological understanding of the Nariin Sukhait area and demonstrate the continuity of the targeted thick coal formations along strike which is one of the key objectives of the 2022 exploration program,” Mr Stats said.

“With a 100-per-cent success rate from the two wells drilled to date, our confidence in being able to prove up and convert the already independently certified prospective resources into contingent resources is growing and we look forward to this work being completed at the end of the 2022 drilling program.”

Alongside the SL-02 drilling data, TMK said further results on gas contents and permeability tests from SL-01 confirmed high gas content, though attempted drill stem test (DST) and injection falloff test (IFOT) work faced several challenges relating to test equipment, hole conditions, and testing methods.

The company said it was now busy mobilising more equipment to the site for permeability testing on SL-02.

Shares in TMK Energy were up 10 per cent to 1.1 cents each at 3:33 pm AEST.

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