TMK Energy closes Telmen acquisition ahead of coal seam gas drill start

TMK Energy Ltd., Sydney, closed its acquisition of Telmen Energy Ltd. and its 100% interest in the Gurvantes XXXV coal seam gas (CSG) project in Mongolia.

The CSG exploration project covers about 10,000 sq km of the South Gobi basin. Within the project area multiple thick (>50 m) high quality, bituminous rank, coal seams outcrop at the surface and extend along an east-west strike for about 150 km, according to Telman. Within the project area there are six active coal mining operations, 26 coal mining leases, and numerous coal exploration licenses.

Earlier this year, the environmental impact assessment for the project was approved by the Mongolian Ministry of Nature, Environment, and Tourism, and mobilization to the site to complete final site preparation is scheduled to occur prior to the late-February or early-March drilling start.

The drilling program is expected to include completion of four fully tested and cored holes within the western portion of the project area, in the region of Nariin Sukhait. The drilling program aims to intersect the thick coal seams at suitable depths for coal seam gas development and complete the first comprehensive testing program to further define the gas resource potential.

With the deal, TMK also holds 20% interest of the Talisman Deep Project, which contains the Napoleon structure in the Barrow-Dampier subbasin.