• TMK Energy (TMK) successfully intersects 40 metres of gassy coal within the lower coal seam at the Snow Leopard–4 (SL-04) well in the South Gobi Basin, Mongolia
• TMK also intersected 16 metres of coal at the top of SL-04, part of an initial four-well program with Talon Energy (TPD), who’s earning a 33 per cent stake in the Gurvantes XXXV CSG project
• Drilling activities have also resumed on the SL-03R well and once complete, Talon will have up to 90 days to choose to proceed to stage two of the farm-in agreement
• Shares in TMK are down 9.09 per cent to trade at one cent and TPD is trading flat at 15 cents as of 1:57 pm AEST

TMK Energy (TMK) and Talon Energy (TPD) have successfully intersected 40 metres of gassy coal within the lower coal seam at Snow Leopard–4 (SL-04) in the South Gobi Basin, Mongolia.

The SL-04 well is part of TMK’s Gurvantes XXXV coal seam gas project which Talon Energy is earning a 33 per cent working interest in under a two-stage agreement.

The gassy coal in SL-04 was intersected between the depths of 287 and 327 metres presenting as a single high quality, clean and homogenous coal seam, confirmed by geophysical logging.

The company intersected an additional 16 metres of coal at the top of the well, representing the basal section of the upper coal seam.

Further, TMK completed a drill stem test over the coal interval and the results will be interpreted soon to provide information on the permeability of the coal interval.

TMK Energy CEO Brendan Stats said the exploration results continue to impress.

Also, drilling activities have resumed on the SL-03R well after a hiatus caused by a mechanical breakdown of the drilling rig and manpower issues caused by Covid restrictions.

“We continue to drill ahead on SL03R well for additional data on the lower coal seam and hopefully that will be achieved in the coming weeks which will then complete the initial exploration drilling program under the Talon farm-in agreement,” Mr Stats commented.

“Following that, we look forward to booking a maiden contingent resource and focusing our efforts on execution of the pilot well program where we hope to be able to produce gas to surface in a relatively short timeframe and prove up the commerciality of the project.”

Once the SL-03R well has been completed, the four well drilling program with Talon Energy will be complete and Talon will have up to 90 days to choose to proceed to the second stage of funding, budgeted to be US$3.15 million (A$4.58 million).

The company said it has enough necessary data required for TPD to commence a contingent resource assessment, and plans to continue advancing the pilot well program scheduled to commence later this year.

Shares in TMK Energy were down 9.09 per cent to trade at one cent and Talon Energy was trading flat at 15 cents as of 1:57 pm AEST.