Ann: Drilling and Testing Completed at Snow Leopard - 1, page-8

TMK Energy’s Snow Leopard-1 well has been drilled and tested to a depth of 675 metres in Mongolia’s South Gobi Basin, where a total 60m of net gassy coal has been intersected.

Drill stem test (DST) and injection fall off testing (IFOT) tests were performed across selected intervals with data analysis and interpretation ongoing.

During the DST testing gas breakout was observed, which supports the understanding the coals have high gas saturation.

Further results on permeability indications from the DST and IFOT testing are expected to be available in the coming week.

Great confidence moving forward

TMK Energy (ASX:TMK) chief executive officer Brendan Stats said the company is pleased to have completed its first well in the four well program with a successful result.

“The gas content and composition results from this first well provide us with great confidence moving forward and we anticipate intersecting more thick gassy coals as we progress with the program,” he said.

According to TMK, desorption testing of coal core to obtain definitive gas data is ongoing as the cores continue to produce gas.

Based on current data, it is now expected that the final gas content of the coal seams is likely to end up in the upper end of the previously indicated range of 7.5m³ /t to 12.5m³ /t on an as received basis.

Gas composition sampling and gas chromatography testing is ongoing.

Results confirm that the coal seam gas has high methane (CH4) concentrations between 94.4% and 98.8% (average 96.0%), and low carbon dioxide (CO2) values between 0.3% and 5.1%.

Further Testing Ahead

TMK says SL-1 and the drill site will now be rehabilitated in accordance with local requirements.

The drill rig will mobilise 5 kilometres east of the SL-1 location, with drilling of the second of the planned four well program expected to begin within the next week.

The next well (Snow Leopard – 2 or SL-2) is planned to target the same coal formations intersected in SL-1.

Drilling and testing of SL-2 is expected to take approximately four weeks, with operational improvements implemented from experience gained from the first well.