TMK Energy Ltd. intersected 70 m of coal from the upper coal seam at its Snow Leopard-2 (SL-2) in the Nariin Sukhait area Gurvantes XXXV coal seam gas project in the South Gobi basin of Mongolia.
SL-2 lies 5 km east of the Snow Leopard-1 (SL-1) drilled in April and is the second well in a four-well program planned in the region.
The coal intersection was made at 167 m. Preliminary results from a sampled core gas desorption test indicate the coal has a high gas content.
The result is encouraging considering the relatively shallow depth of the intersection where coal usually coal has lower gas content and lower gas saturation, the company said.
The company plans to drill SL-2 to about 600 m targeting the same formations intersected in SL-1. Downhole geophysical surveys and downhole permeability testing are also planned to acquire data on coal seam thickness and characteristics.
In the meantime, further testing in SL-1 has confirmed higher than expected gas content from the initial desorption samples while 41 remaining samples from the first well continue to produce gas. The overall gas content will be made when desorption rates decrease to the level required to make a final measurement.
Once all four wells are drilled and tested, TMK hopes 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.
The drilling program is being funded by farminee Talon Energy Ltd. under the $4.65 million 2-stage agreement executed in February 2021.
Initial funding of $1.5 million has been allocated to the current four-well drilling and testing program. The second stage ($3.15 million) is budgeted to the pilot well program planned later this year should Talon elect to proceed with the second stage of the farm-out.