• TMK Energy (TMK) and Talon Energy (TPD) complete the initial exploration drilling program at the Gurvantes XXXV project in the South Gobi Basin, Mongolia
• Following completion, TMK engaged Netherland, Sewell & Associates to commence the company’s maiden independent contingent resource assessment of the project
• The assessment is expected to take around six weeks to complete and will integrate the new data obtained from the initial exploration drilling program
• With this completion, Talon, which has a 33 per cent working interest in the project, will have up to 90 days to choose to proceed to the second stage of funding
• Shares in TMK Energy are down 6.67 per cent to trade at 1.4 cents while shares in Talon are up 3.23 per cent to trade at 16 cents at market close

TMK Energy (TMK) and Talon Energy (TPD) have completed the initial exploration drilling program at the Gurvantes XXXV Coal Seam Gas (CSG) project in the South Gobi Basin in Mongolia.

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

The company finished drilling and testing Snow Leopard-3R (SL-3R) with a total net thickness of 175 metres of gassy coal intersected, drilled to a total depth of 558 metres.

Geophysical logging has confirmed a total of 73 metres of net coal in the upper seam from a depth of 174 metres and 102 metres of net coal in the lower seam from a depth of 455 metres – an overall 25 per cent increase from the previously reported coal thickness for SL-3R.

SL-3R was still drilling in coal within the lower seam at a depth of 558 metres, however, hole conditions were deteriorating, and it was determined to be unnecessary to proceed given the very thick coal already intersected.

Despite this, TMK believes that SL-3R represents the thickest intersection of gassy coal in a CSG well in Mongolia.

Preliminary results indicate that permeability testing was only partially successful, and results obtained are currently being interpreted.

However, drilling was less favourable at Snow Leopard-5 (SL-5) as difficult drilling conditions prevented further satisfactory drilling progress toward the lower seam interpreted to exist at this location.

SL-05 (SL-05R) was re-spudded and the well is currently at a depth of approximately 320 metres, with the total depth of SL-05R expected to be approximately 650 metres.

Following the completion of the initial exploration drilling program, Netherland, Sewell & Associates (NSAI) have been engaged to commence the company’s maiden independent contingent resource assessment for the project.

The assessment is expected to take around six weeks to complete and will integrate the new data obtained from the initial exploration drilling program.

With the completion of the fourth exploration well according to the two-stage farm-out agreement with Talon, the initial drilling obligation under stage one is now complete.

Talon will have up to 90 days from September 26 to choose to proceed to the second stage of funding, budgeted to be US$3.15 million (A$4.92 million).

Shares in TMK Energy were down 6.67 per cent to trade at 1.4 cents while shares in Talon were up 3.23 per cent to trade at 16 cents at market close.