Exploration and Production of Coal bed methane from Karaganda coal basin

Methane resources of the Karaganda coal basin Coal mines are marked as: Reserves of coal bed methane in Karaganda coal basin amount to 650 bln.m3 Reserves of the Taldykuduk site amount to 86 bln. m3 1 Tenteksky 2 Sherubay-Nurinsky 3 named after 50-years of October revolution 4 named aftr Kostenko 5 Stahanovsky Coal-bearing formations Coal rank Ashlyarinsky Dolinsky Fatty, coked fatty Karagandinsky Tenteksky Coked, forged coal Boundary of the Jurassic coal-bearing deposits (coal technology group B3) Nonbaking coal Mining areas Tectonic faults border spread of various coals grade composition Tenteksky Karagandinsky Border of the mining areas Sherubay-Nurinsky Verhnesokursky

field location Taldykuduk site KARAGANDA The site is located in Bukhar-zhyrau district 22 km away from Karaganda city. In the center of the site there is a village Taldykuduk. Power lines and paved roads cross the site. Zhezkazgan Karazhal Balhash

Work done 4 exploration wells with depth from 350 to 881 m with hydraulic fracturing of productive coal beds 3 pilot wells (1 directional and 2 vertical wells with thickening of 3 coal beds) Experimental drilling by air hammer method up to 600 m 2 wells with plasma-impulse impact on coal seams 6 exploration wells with coring

Work done NMR logging; Technical and maceral analysis of coals; Sorption and desorption research; Isothermal research, coal Permeability: 1,8 mD at 280 m; ˂0,01 mD at 350 m. Plasma-impulse impact on coal seams Hydraulic fracturing of productive zones

Planned work The methane inflow obtained during the development of wells is about 1,5-2 thous. m3/day It is planned to drill 10 exploration wells with coring and 6 production wells, including intersection wells, multilateral wells with hydraulic fracturing

Comparative indicators of coal seams gas content Comparison of obtained Karaganda basin isotherm curves with other curves of coal basins of the world. As can be seen from the graph, San Juan and Arkomskogo basins (USA) show the greatest similarity to the Karaganda coal basin. This gives reason to believe that the coal basins are characterized by the similarity in respect of thermal maturity, moisture capacity, ash content, composition of macerals, geological history and possibly reservoir properties

Results of coal seams material analysis Well Т5 Т5-4 Layer К12 К10 К11 Sampling interval, m 279-289 426-429 221-224 352-352,5 Coal composition with mineral impurities,% Coal 87,0 91,0 93,0 85,0 Clay matter 12,0 9,0 6,0 14,0 Quartz 0,5 Fractions Sulfides Carbonates 1,0 Composition of the microcomponents,% Vitrinite 55,0 64,0 75,0 69,0 Semivitrinite 7,0 3,0 Inertinite 34,0 28,0 21,0 24,0 Liptinite 2,0 Min-Max vitirinite reflectance % 0,90-1,29 1,00-1,45 0,86-1,18 1,02-1,47

Coal gas content Gas bearing, m3/ton Sampling depth, m

Isotherm curves Volume of adsorbed gas, m3/t Absolute pressure, Mpa isotherm coal seam K-12 (probe 8 sample 1) isotherm coal seam K-12 (probe 8 sample 2) isotherm coal seam K-10 (probe 9 sample 1) isotherm coal seam K-10 (probe 9 sample 2) isotherm coal seam K-12 (probe 10 sample 1) isotherm coal seam K-12 (probe 10 sample 2) isotherm coal seam K-11 (probe 11 sample 1) isotherm coal seam K-11 (probe 11 sample 2) Absolute pressure, Mpa

SATURATION OF COAL SEAMS Depth, m

presSure and desorption volume Sorption probe number Seam Depth, m Formation pressure, MPa Desorption pressure, MPa Ratio of desorption pressure to formation pressure Max volume of gas desorption, m3/t 8 (sample 1) к12 279,00 2,7 1,26 0,47 18,18 8 (sample2) 1,24 0,46 18,46 9 (sample1) к10 426,00 4,04 1,96 0,49 21,26 9 (sample2) 2,41 0,60 19,91 10 (sample1) 228,20 2,16 1,00 15,83 10 (sample2) 0,97 0,45 15,92 11 (sample1) к11 352,00 3,34 1,54 19,68 11 (sample2) 1,53 19,62

SITE LOCATION PLAN

EQUIPMENT AVAILABILITY As the world practice shows, the success of projects for the extraction of coalbed methane depends on the availability of modern technological equipment. In this regard, drilling at the Taldykuduk site conducted using modern drilling rigs «Atlas Copco» of the last generation to accurately drill vertical and horizontal wells or wells with numerous take-off points and hydraulic fracturing fleet: Pump assembly – 3 units; Control station – 1 unit; Blender – 1 unit; Manifold skid – 1 unit; Sand truck – 2 units.

partners In the management of JSC "KazTransGas" is a huge gas transportation system, which includes more than 30 thousand kilometers of gas distribution networks, more than 15 thousand kilometers of main gas pipelines, 56 compressor stations that have installed 316 gas compressor units, 3 underground gas storage. The company supplies commercial gas over 7 million customers in the country. Trouble proof and trouble-free operations of the whole system provides more than 14 thousand people.

INNOVATIVENESS OF THE PROJECT Innovativeness of the project is in the creation of a new energy industry with the use of alternative energy sources. The development of coal bed methane extraction and utilization projects will allow to obtain the following results: development of unconventional non-polluting energy source, which partially replaces the traditionally used coal in the industrialized Central and Eastern Kazakhstan; use of methane as a source of energy in the domestic household and in road transport, where it will replace less environmentally friendly and more expensive liquid hydrocarbons and liquefied gas; development of new industries based on the processing of methane, with the creation of new jobs; reduction of methane emissions, which is the second most important "greenhouse gases“ emitted in the atmosphere by coal mining companies in Central Kazakhstan; Economic costs reduction of the subsequent coal production, improvement of the safety in the operations of the underground coal mining.

Welcome to Kazakhstan! कजाकिस्तान के लिए आपका स्वागत है! TaldykudukGas LLP has positive experience in Karaganda coal basin, coal bed methane exploration, as inflow of methane about 1,5-2 thous. m3 per day. We are happy to invite potential investors in Kazakhstan and start productive coworking! For potential investors we have favorable conditions!