- Elixir Energy’s (EXR) pilot production project in Mongolia reaches a flow rate of 100,000 cubic feet of gas per day
- The two-well program, within EXR’s Nomgon IX coal bed methane production sharing contract in the South Gobi Basin, hit the milestone production rate after being operational for 83 days
- However, the Nomgon eight well has not performed as steadily as Nomgon nine, facing several technical issues including a downhole equipment mechanical fault
- The pilot production test is continuing, and assessments of commerciality will be completed in the coming months
- EXR shares are up 5.77 per cent trading at 14 cents at 2:26 pm AEDT
Elixir Energy’s (EXR) pilot production project in Mongolia has reached a flow rate of 100,000 cubic feet of gas per day.
The two-well program, within the company’s Nomgon IX coal bed methane production sharing contract in the South Gobi Basin, hit the milestone production rate after being operational for 83 days.
However, the Nomgon eight well has not performed as steadily as Nomgon nine, facing several technical issues including an initial downhole equipment mechanical fault.
Elixir said the issues experienced were “quite normal” for a project of this nature, and, following a workover and clean up, the company had seen “encouraging signs of improvement”, with both gas and water rates increasing.
The company said both the Nomgon eight and nine wells reached 180 barrels of water per day.
According to Elixir, this water production level was very low when compared to most Australian producing areas, but the salinity appeared to have stabilised to levels potentially suitable for livestock to drink.
The company said this could provide an opportunity for collaborative work with local communities over future water production.
With over 80 days of production data on hand, Elixir said it was starting to interpret a clear trend on the longer-producing Nomgon nine well.
The company said the decreasing reservoir pressure due to coal dewatering — and the consequent increasing gas rate — was enabling the start of the estimation of an early stage type-curve, which would be instrumental in assessments of commerciality due to be completed in the coming months.
Meanwhile, the Mongolian petroleum regulator has approved Elixir’s budget and work program for this year, which includes the drilling of a minimum of nine wells — four of which will be appraisal wells and the other five exploration wells.
EXR shares were up 5.77 per cent trading at 14 cents at 2:26 pm AEDT.