Economy

TMK gets set for coal seam gas as ex-Sino exec joins board

Corrie said TMK was well advanced in running a ruler over Gurvantes, which is strategically located to serve an energy-hungry part of the world.

“I’m looking forward to working alongside the board and management, drawing on prior experience and extensive knowledge of the region to unlock what is clearly a potentially significant discovered resource,” he said.

Gurvantes is less than 20 kilometres from the Chinese border and close to existing gas infrastructure in northern China. The location offers the company a great leg-up to supply gas into the world’s largest energy market.

To free up resources for the final push at Gurvantes and lessen its risk exposure to expensive offshore operations, TMK last week executed a sale agreement to divest its 20 per cent interest in the Talisman Deeps offshore project in Western Australia’s Barrow-Dampier sub-basin.

Management agreed on a deferred $1 million consideration for the sale, payable when Talisman starts commercial oil or gas production.

Meanwhile, TMK’s Pilot Well project within Gurvantes has been moving ahead at pace in southern Mongolia.

The company has been setting record gas production levels at Pilot Well and most recently announced a 10 per cent boost in its March output to achieve more than 10,000 cubic metres of gas.

Pilot Well also pumped out record daily gas volumes in March.

Gas slugs and reservoir pressure tests of several of Gurvantes’ Lucky Fox wells also offer promising signs that the company’s pilot well project is heading towards its critical desorption pressure.

TMK also plans to drill an additional pilot production well at Lucky Fox before the end of June, which would help lift its production volumes and potentially add to gas sales under a sales agreement with Jens Energie LLC.

The company’s contingent resource (2C) of 1214 billion cubic feet (BCF) of gas is Mongolia’s biggest. The project currently contains a 5300BCF prospective resource across its total 8400-square-kilometre ground.

With Corrie on board and Gurvantes seemingly smoothly progressing towards commercial production, TMK is well poised to take further steps towards the project’s commercialisation.

With that in hand, the company has now moved strategic partnerships and potential offtake agreements to the top of its to-do list.

Is your ASX-listed company doing something interesting? Contact: mattbirney@bullsnbears.com.au

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  • Source of information and images “brisbanetimes”

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