TMK Energy Limited provided an update on exploration activities at the Gurvantes XXXV Coal Seam Gas (CSG) Project in the South Gobi Basin in Mongolia. Drilling and testing of SL-05R was completed on 9 October 2022, having been drilled to a total depth of 510 metres with a total net thickness of 69 metres of coal intersected in the well. Geophysical logging has confirmed a total of 41 metres of net coal in the upper seam from a depth of 190 metres and 28 metres of net coal in the lower seam from a depth of 447 metres.

Permeability testing (via Drill Stem Test) was completed over the upper seam interval and preliminary results indicate the higher permeability value to date for the Project. Detailed analysis and interpretation of the results are underway and final permeability readings will be reported when the analysis and interpretation is complete. The lower seam was unable to be tested for permeability due to poor hole conditions.

Preliminary results from desorption samples indicate that all coal from a depth of greater than 200m contains moderate to high gas contents (in the order of 5 m3/t to 10 m3/t on an as received basis) from both the upper and lower coal seams. Final analysis and interpretation of all data from the 2022 exploration program will progressively become available as testing continues, including final gas contents, gas composition, and permeability results. Of note, samples from SL-02 and SL-03 are currently undergoing adsorption isotherm analysis in Brisbane, with results expected in the coming weeks. Drilling and testing for the 2022 exploration program is now completed and the drilling contractors have been demobilised from site.

The focus will now shift to the advancement of the Pilot Well Program and the detailed planning and logistics that are required to deliver the proof-of-concept stage of the Project, which will be to produce first gas to surface.