Mongolia block seeps show presence of petroleum

mongoliaABUNDANT light crude oil seeps have been discovered in Mongolia by ASX-listed Wolf Petroleum.

The oil was identified on seismic shot hole sediments, with the seeps appearing to cluster along certain parts of the seismic lines, providing “compelling evidence for the presence of an active petroleum system on the Sukhbaatar Block”.

The Sukhbaatar Block was one of the first petroleum exploration blocks to be identified in the country and is within a proven and producing area of eastern Mongolia.

Wolf Petroleum collected more than 7500 samples from the bottom of seismic shot holes at the 23,000 square kilometre block and analysed 242 samples to document the presence of an active petroleum system within the Toson Tolgoi and Tal Bulag basins.

“The presence of light crude oil seeps in the Toson Tolgoi and Tal Bulag basins on the SB block was determined by Synchronous Scanned Fluorescence (SSF) analysis of soil samples,” Wolf Petroleum stated.

“High (450 API) to medium (300 API) gravity crude oil seeps have been identified with concentrations ranging from 1 to 10 parts per million in the shot hole sediments. A total of 53 out 242 (about 22 per cent) of the shot hole samples have high gravity oil seeps ranging from 1 to 10 parts per million concentration.

“The presence of oil is further substantiated by the Pixler gas compositions…of samples with anomalous concentrations of acid extractable thermogenic hydrocarbons.”

A second batch of 300 samples has been sent for testing and Wolf Petroleum expected to receive the results next month.

It would now work on the interpretation of the recently completed 450km 2D seismic program with the aim of identifying multiple oil and gas traps.

The company’s share price increased significantly on the back of the discovery.