TMK embarks on coal gas drilling in Mongolia
TMK plans to begin drilling on its Gurvantes XXXV coal seam gas (CSG) project in Mongolia’s South Gobi Basin in March following the award of the key drilling contract.
Contractor Ellehcor Drilling Services will drill at least four fully tested drill holes in the western part of the license area in Nariin Sukhait which hosts a number of active surface coal mining operations.
Nariin Sukhait is known to contain two very thick, high quality coal seams which have high gas content according to records from five historic wells, making it a priority target for TMK Energy (ASX: TMK).
These historic wells have not been fully tested using modern CSG techniques and the Company’s drilling program will provide the data needed to fully assess the commercial potential of the previously identified CSG resource.
It also marks the first step in converting the potential resource of just under 6 trillion cubic feet of gas into a more certain prospective resource.
That the drilling program is funded by the partner Talon Energy (ASX:TPD) under an existing farm-out agreement is just the icing on the cake.
“With all approvals in place and all contractors engaged, we look forward to commencing our inaugural drilling program in early March and taking a significant step forward in our goal of delivering a world-class CSG project just outside of China. , the largest growing gas market in the world,” CEO Brendan Stats said.
Coal gas at China’s doorstep
TMK had just completed the acquisition of Gurvantes XXXV earlier this month.
The project hosts several very thick, high-grade coal seams that outcrop at surface and extend along an east-west trend.
Preliminary exploration of the CSG completed in 2004-2005 confirmed the high gas content of the coal and other critical coal parameters necessary for the success of the CSG project.
Importantly, it is close to North China’s extensive gas transmission and distribution network and close to several large-scale mining operations with high energy requirements.
This article was developed in conjunction with TMK Energy, a Stockhead advertiser at the time of publication.
This article does not constitute advice on financial products. You should consider obtaining independent advice before making any financial decisions.