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Elixir Energy (ASX:EXR) completes Tim-2 well in Mongolia

ASX News, Energy
ASX:EXR      MCAP $130.4M
05 May 2022 12:10 (AEST)

Operations In process at the Nomgon project, Mongolia. Source: Elixir Energy

Elixir Energy (EXR) provided an update on the coal bed methane (CBM) exploration program underway at its Nomgon IX coal CBM production sharing contract (PSC).

The energy stock recently completed drilling the Tim-2 appraisal well which followed the successful Tim-1S well drilled earlier this year.

Tim-1S targeted the identification of a new sub-basin to the south of the Tavan Tolgoi mining complex. This well was drilled to an 804-metre depth and logged 16 metres of coal and 30 metres of silty coal.

The Tim-2 well is located around 200 metres downdip of the Tim-1 coal intersection. Tim-2 was drilled to a total depth of 1020 metres which is the deepest well the company has drilled in Mongolia to date.

The well logged three metres of coal and five metres of silty coal which is less than Tim-1 and can reportedly be attributed to localised faulting.

Elixir Energy will integrate the Tim-2 results with geological mapping, age dating and potentially new seismic to better define the coal-bearing sub-basin.

The drill rig has since moved from Tim-2 to a new potential sub-basin in the west of the PSC to spud the Bulag Suuj-1 well.

In addition to the Tim wells, the Yangir-4 well has recently spudded in the coal-bearing Yangir sub-basin.

Company shares were in the grey at 16.5 cents at 11:26 am AEST.

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