Canadian firm to assess Mongolia's CBM potential

01/10/2005
Petroleum Authority of Mongolia has signed an exploration contract with Storm Cat Energy Corp., Calgary, to assess coalbed methane potential near Ulaanbaatar.The contract requires that Storm Cat spend $300,000 on exploration by Dec. 31, 2005, on 5.5 million acre Tsaidam Block XXVI, which contains more than 500,000 acres of geologically mapped coal deposits. The work program is for a minimum of three wells that would be drilled to about 600 m.Then the company has until June 30, 2006, to enter into a production sharing contract. Such a contract would be similar to the agreement that governs Storm Cat's Noyon project in the South Gobi desert signed last April. The company has drilled eig...
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