• TMK Energy (TMK) reports high gas saturation and permeability from its five-well exploration program at the Gurvantes XXXV CSG project in Mongolia
• The final adsorption analysis from Snow Leopard wells SL-02 and SL-03 indicates gas saturation value results averaging over 80 per cent
• Further, final results from drill stem testing (DST) completed over the upper seam interval in SL-05R have confirmed the highest permeability result to date within the project area
• TMK CEO Brendan Stats says work is still ongoing at the project, with the company’s focus now shifting to completing an initial contingent resource estimate and planning its 2023 exploration program
• Shares in TMK Energy are down 9.52 per cent to 1.9 cents, and shares in earn-in partner Talon Energy are down 5.41 per cent to 17.5 cents, at 1:51 pm AEDT

TMK Energy (TMK) and Talon Energy (TPD) have confirmed high gas saturation and permeability from a five-well exploration program at the Gurvantes XXXV CSG project in the South Gobi Basin of Mongolia.

Talon is earning a 33 per cent working interest in the project under a two-stage farm-out agreement.

TMK said the final adsorption analysis from Snow Leopard wells SL-02 and SL-03 indicated gas saturation value results averaging over 80 per cent.

SL-02’s adsorption isotherm results will feed into the planning for the pilot well program to be completed in the vicinity of the site to give the company higher confidence in the potential production profile of the pilot well program.

Meanwhile, the final results from drill stem testing (DST) completed over the upper seam interval in SL-05R have confirmed the highest permeability result to date within the project area, with a coal permeability value of 56 millidarcys (mD).

This permeability reading essentially suggests that the thick upper coal seam could be productive from simple vertical production wells without the need for complex well designs or additional stimulation.

This would then reduce the overall cost of development of any resources confirmed in the upper coal seam.

TMK CEO Brendan Stats said work was still ongoing at the project, with the company’s focus now shifting to completing an initial contingent resource estimate and planning its 2023 exploration program.

“At this stage, the planned 2023 program includes drilling several step-out exploration wells along-strike that we anticipate will continue to prove up the scale of the project, as well as being able to demonstrate the proof of concept with gas to surface from our initial pilot well program,” Mr Stats said.

Shares in TMK Energy were down 9.52 per cent to 1.9 cents, and shares in Talon Energy were down 5.41 per cent to 17.5 cents, at 1:51 pm AEDT.