- Elixir Energy (EXR) discovers a new coal-bearing sub-basin at its Nomgon project in Mongolia
- The company found the presence of coal through two strat-holes, Kingston-1S and Kingston-2S, which intersected 12 metres and 8 metres of coal, respectively
- Notably, the Kingston 2S well is the deepest well that Elixir has drilled to date at the project
- Later this year, Elixir is planning to drill a core-hole in the Kingston sub-basin to measure its gas content and permeability
- Just before the market opens today, Elixir last traded at 23.5 cents per share
Elixir Energy (EXR) have discovered a new coal-bearing sub-basin at its Nomgon IX Coal Bed Methane (CBM) Production Sharing Contract (PSC) project in Mongolia.
Drilling at the sub-basin found the presence of coal through two strat-holes, Kingston-1S and Kingston-2S, intersecting 12 metres and 8 metres of coal, respectively.
Notably, the Kingston 2S well is the deepest well that Elixir has drilled to date in the PSC.
Around six kilometres away from Kingston 2S is the step-out well, Kingston-3S, which has recently just spudded.
Later this year, Elixir is planning to drill a core-hole in the Kingston sub-basin to measure the key CBM parameters of gas content and permeability.
Managing Director Neil Young is pleased Elixir’s “rinse and repeat” model of ultra-low-cost exploration for potentially CBM bearing coals have been delivered at Kingston.
“Further appraisal work is already underway to seek the extent of the sub-basin and will be followed up by a core-hole later this year,” he said.
“At our most mature sub-basin — Nomgon — our program is now moving to drill more wells to gather additional data to design the first phase production test wells planned for later this year.”
The company said it will continue to provide regular operations updates on its 2021 work program, which now includes around 20 wells.
Just before the market opens today, Elixir last traded at 23.5 cents per share.