TMK gets to work on third gas well at Mongolian project www.marketindex.com.au
TMK Energy (ASX:TMK) has today commenced drilling the third of four planned wells onsite its Mongolian acreage at the company’s flagship CSG project.
Earlier this month, the company reported a 91m thick coal body at Snow Leopard-2. Initial test results indicate high methane contents (the key constituent of natural gas) and the easy flow of gas through rock.
Snow-Leopard 3 is targeting the same coal bodies.
Management notes results from SL-3 upon completion will be compared with SL-1 and SL-2 to further delineate the resource and log the gas characteristics encountered at Gurvantes XXXV.
Millidarcy metre values for the coal bodies intersected in SL-2, a measure of how easily gas can flow through rock, reflected a desirable coal deposit allowing the free flow of gas molecules underground.
Those results suggest the stimulation and extraction of gas is likely to present a commercially feasible prospect for the company's CSG production.
Talon to earn 33% interest
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.
The partnership intends to establish a pilot plant on-site at which time Talon Energy will assist in the provision of a further US$3.15m.
TMK is now fast tracking a pilot well proof of concept process with operations expected to commence later in 2022.
Jonathon is a journalism graduate and avid market watcher with exposure to governance, NGO and mining environments. He was most recently hired as an oil and gas specialist for a trade publication. Email Jon at jon@marketindex.com.au.
Published Date:2022-10-18