TMK Energy encounters gassy coal at fourth Snow Leopard well

TMK Energy Ltd. Encountered gassy coal at its Snow Leopard coal seam gas prospect in the Gurvantes XXXV project in southern Mongolia’s South Gobi basin.

Snow Leopard-4 (SL-04) intersected 40-m thick gassy coal within the lower coal seam at between 287-327 m in the prospect area. The interval presented as a single high-quality, clean and homogenous coal seam-unit confirmed by geophysical logging.

An additional 16 m of coal was intersected at the top of the well which represents the basal section of the upper coal seam, the company said.

SL-04 was designed to intersect the lower seam at a shallower depth to provide additional data on gas content and permeability of the lower seam.

Gas desorption measurements from samples is ongoing, but preliminary results indicate the coal seam has moderate to high gas content in the order of 5-10 cu m/tonne.

The result is consistent with gas content results from the first three Snow Leopard wells extending over a 10 km strike length.

On completion of SL-03R, which is targeting the lower coal seam adjacent to where the upper seam was intersected in SL-03, the initial four-well farm-out agreement with Talon Energy Ltd. will be complete.

Talon will have 90 days to elect to proceed to the next stage of funding ($3.15 million), which is budgeted towards the pilot well program.