- Elixir Energy (EXR) has provided an update on its Nomgon Project in the South Gobi region of Mongolia
- Earlier this month, Elixir announced it will push ahead with plans to create Mongolia's first gas-fired power generation project, using coal bed methane (CBM)
- The project includes the Nomgon IX CBM production sharing contract (PSC), which has seen its first exploration well, Temee-1S, completed
- The well hit a final depth higher than predicted and did not intersect coal
- Elixir is planning of drilling around 30 holes in the Nomgon IX PSC, and so far, 12 wells have been drilled, of which 11 of them previously intersected coal
- On the market today, Elixir Energy is in the grey and trading at 37 cents per share
Elixir En
) has provided an update on its Nomgon project in the South Gobi region of Mongolia.
Earlier this month, Elixir announced it will push ahead with plans to create Mongolia's first gas-fired power generation project, using coal bed methane (CBM).
The project includes the Nomgon IX CBM production sharing contract (PSC), which has seen its first exploration well, Temee-1S, completed.
The well hit a final depth higher than predicted and did not intersect coal.
Notably, Temee-1S well is, so far, the company’s furthest step-out well and its result serves to define the eastern limit of coal in one of the proven CBM discovery centres.
Elixir is planning of drilling around 30 holes in the Nomgon IX PSC. So far, 12 wells have been drilled, of which 11 previously intersected coal.
The company will now move the rig to the Cracker-1S exploration strathole, around 130 kilometres to the northwest of Temee 1S.
"Our overall success rate from the drilling to date in the PSC has been exceptional, but there is always geological risk in exploration and the accelerated scope of our current plans naturally means there will be the odd “dry-hole” within a ~30 well campaign," Managing Director Neil Young said.
"Cases of COVID-19 transmission are unfortunately high in Mongolia at present, but the country’s ability to vaccinate its population is almost un-rivalled compared to developing nation peers and we are confident that we will be able to accelerate our work program in the months to come," he added.
