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Elixir Energy (ASX:EXR) kicks off 2021 field program

Energy
ASX:EXR      MCAP $135.9M
08 March 2021 10:10 (AEST)

Elixir Energy (EXR) has begun the 2021 field program at its Nomgon coal bed methane (CBM) production sharing contract (PSC) in Mongolia.

The project, which is nearly equivalent to the size of Belgium, is located in the South Gobi region on the Mongolian Chinese border.

In Mongolia, a vaccine program has begun and the government has eased some COVID-19 restrictions, including those relating to travel.

The field team has started spudding the Yangir-2 core hole to follow up on the Yangir-1 strat hole, which encountered 27 metred of visibly bubbling coal seams.

Managing Director Neil Young said the team is pleased to be back in the field after a few months on hiatus.

“The Yangir-2 core-hole will follow up on the highly encouraging predecessor strat-hole well, which served to open up a new sub-basin in the Nomgon CBM PSC.”

“Surprises can of course happen, but if all goes to plan, our drilling and other field work program should continue for the rest of the year,” he added.

EXR shares are down 3.7 per cent to 26 cents at 10:27 am AEDT.

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