- Elixir Energy (EXR) has potentially made a coal seam gas discovery at its Nomgon-1 well
- The Nomgon IX coal bed methane production sharing contract is located in south Mongolia and covers 30,000 square kilometres
- Elixir has measured raw net coals of 37 metres in a coal seam package of over 5 cubic metres per tonne
- Further analysis of the results and lab work will be conducted over the next few months
- But so far, the ranges measured meet the requirements of a coal seam gas discovery
- Elixir Energy is down 7.14 per cent with shares trading for 3.9 cents each
Elixir Energy (EXR) has given an update on results from the Nomgon-1 core-hole well in its Nomgon IX coal bed methane (CBM) production sharing contract (PSC).
Nomgon IX CBM PSC is located in the south of Mongolia, proximate to the Chinese border. This PSC was executed in September 2018 and covers a 30,000 square kilometre area.
The well-site desorption lab at Nomgon-1 has measured an average total gas content in the thickest 49 metre gross (37 metres net) coal seam package of over five cubic metres per tonne of raw coal.
Three down-hole permeability tests were successfully conducted on the well using injectivity fall-off test (IFOT) equipment.
While the results need to be further analysed, the ranges measured have so far met the requirements of a coal seam gas discovery (CSG).
This well-determined CSG discovery is the first in Mongolia and Elixir considers it a great outcome.
Over the next few months, the company will provide a “dry ash free” (DAF) number. The DAF number is the figure most commonly quoted by CSG companies – and which by definition will be higher than the raw number when the ash and moisture have been removed.
The Nomgon-1 well has been plugged and abandoned to abide by Mongolia’s petroleum regulations.
“We have now moved onto the technical and regulatory bodies of work required for further work at this location and elsewhere in our massive PSC,” Managing Director Neil Young said.
“This de-risking work will increasingly make the PSC more and more attractive to potential partners and discussions with such parties will ramp up in the months to come,” Neil added.
Additionally, Elixir will measure features such as saturation and ash content. Results from this will feed into a planning process for a testing and delineation program for this sub-basin.
Elixir Energy is down 7.14 per cent with shares trading for 3.9 cents each at 2:09 pm AEDT.