TMK confirms high gas contents at Snow Leopard wells, Mongolia

TMK Energy Ltd., Perth, confirmed high gas contents in Snow Leopard wells in the Gurvantes XXXV coal seam gas project in South Gobi basin in Mongolia.

Final gas content results in the desorption samples taken from SL-02 and SL-03 confirm target shallow depth coal seams at 170-300 m show saturation values of 78-92%.

Coal permeability for SL-02 is 47 millidarcies (md) and 760 md for SL-03.

Results from SL-02 average 9.5 cu m/tonne (10.6 cu m/tonne on a dry ash free (DAF) basis), while SL-03 averaged 9.8 cu m/tonne (11.8 cu m/tonne DAF basis).

These compare with an average 13.2 cu m/tonne (15.7 cu m/tonne DAF basis) for SL-01 completed in May.

Methane content averages 96% across the three wells with CO2 averaging 2.4%.

Petrography studies indicate that the coal is 80% vitrinite macerals with a vitrinite reflectance value of 0.85% indicating a high volatile bituminous coal rank, TMK said.

TMK is re-drilling SL-03 (SL-03R) to intersect the lower coal seam.

A second rig spudded SL-04 about 6 km east of SL-03R targeting the coal formations of previous wells but concentrating on the lower seam projected to be at shallower depth.

The combination of thick shallow coal with high gas content and high permeability makes the Snow Leopard exceptional, said Brendan Stats, chief executive officer.

Once all four wells are drilled and tested, TMK hopes that the resulting data will enable it to convert a portion of the independently certified 5.96 tcf of gross prospective resource into a maiden contingent resource for the Nariin Sukhait area during second-half 2022.

Drilling is funded by Talon Energy Ltd. under a $4.65 million 2-stage agreement executed in February 2021.