• Environmental Impact Assessment approved by the Mongolian Ministry of Nature, Environment and Tourism
• Drilling on track to commence mid-first quarter 2022
• Drilling to be the first step in the definition of a significant Contingent Gas Resource adjacent to the growing Chinese gas market

Map source: Talon Energy

Talon Energy has been notified by its Gurvantes XXXV JV Partner Telmen Resource LLC (Telmen) that the Environmental Impact Assessment (EIA) for the Gurvantes XXXV Project has been approved by the Mongolian Ministry of Nature, Environment and Tourism. As a result of the EIA approval, Telmen will mobilise to site within the coming weeks to complete final site preparations, with the maiden Gurvantes XXXV drilling program expected to commence in late February - early March.

The drilling program will include the completion of 4 fully tested cored holes within the western portion of the Gurvantes XXXV Project area, located in the region of Nariin Sukhait. Narrin Sukhait has a number of active open cut coal mining operations and has been extensively explored for coal over the last 15 years. The area is known to contain two very thick, high quality, coal seam groups, and preliminary coal seam gas data acquired from a series of 5 wells indicates high gas contents.

The drilling program aims to intersect the thick coal seams at suitable depths for coal seam gas development, and complete the first comprehensive testing program to further define the significant potential of the Project. The drilling is the first step in the process of upgrading the independently certified 5.96 TCF (2U risked) Gross Prospective Resource to Contingent Resources. This will be a major milestone in the potential establishment of a world class gas project adjacent to one of the world’s most important gas markets, in China.

Talon’s Non-Executive Director, responsible for Mongolia, David Casey said: 
“The EIA approval is the culmination of a comprehensive process by all involved, and we are very excited by the prospect of drilling our maiden corehole in Mongolia in the coming weeks. This is a significant milestone for both Telmen and Talon as the Joint Venture looks to book what I believe will be Mongolia’s largest Contingent Gas Resource by around the middle of the year, thereby establishing Gurvantes XXXV as the pre-eminent and closest coal seam gas project to the largest growing gas market in the world, in China.”

Gurvantes XXXV Overview

The Gurvantes XXXV PSA covers a significant area of 8,400km² and is in, what is considered one of the most prospective coal seam gas basins globally. Gurvantes XXXV is situated less than 20km from the Chinese-Mongolian border and close to the extensive Northern China gas transmission and distribution network. It is also proximate to several large-scale mining operations with high energy needs. Gurvantes is therefore ideally placed for future gas sales to satisfy both local Mongolian, as well as Chinese, energy requirements. 

KeyFacts Energy: Talon Energy Mongolia country profile