- Elixir Energy (EXR) signs on two new drilling sub-contractors to help complete its planned 2022 exploration at the Nomgon IX gas project in Mongolia
- The company says it has locked in all formal annual approvals to begin its 2022 exploration program, set to include the drilling of several wells and the collection of 2D seismic data
- Elixir has re-signed sub-contractor Top Diamond Drilling, and has also struck deals with Ellecohr and a local subsidiary of drilling firm Major Drilling
- Elixir Managing Director Neil Young says as the Mongolian winter turns to spring, the company is rapidly expanding its activities at Nomgon IX
- Shares in Elixir Energy were flat at 17.5 cents
Elixir Energy (EXR) has signed on two new drilling sub-contractors to help complete its planned 2022 exploration work at the Nomgon IX gas project in Mongolia.
The company today said it had locked in all formal annual approvals to begin its 2022 exploration program, which is set to include the drilling of several wells alongside the collection of around 322km of 2D seismic data.
This planned work comes on top of the Tim-1S and Tim-2 exploration wells in the area, which Elixir said were carry-over wells from its 2021 budget.
Sub-contractor Top Diamond Drilling LLC has completed the Tim-1S well, which was drilled to a total depth of 804m and logged 16m of coal and 30m of silty coal. Top Diamond Drilling has now moved its rig to the Tim-2 location, around 200m down-dip of the Tim-1 coal intersection.
Elixir said it had re-signed Top Diamond Drilling for further 2022 exploration work and inked up a deal with a new drilling contractor, Ellecohr, to drill its planned exploration and appraisal wells at the Nomgon IX project.
Meanwhile, Elixir has also signed a local subsidiary of international drilling firm Major Drilling to complete some long-term pilot production wells at the project. This work is slated to begin around the middle of the year.
“Naturally we are pleased that our 2022 program has started off with a successful exploration well,” Elixir Managing Director Neil Young said.
“As the Mongolian winter turns to spring, we are rapidly expanding our activities in the Nomgon PSC and are pleased to be adding two new drilling subcontractors to our overall team.”
Shares in Elixir Energy were unchanged at 17.5 cents each. The company has a $151 million market cap.