While we wait for the next operations update, thought I’d...

While we wait for the next operations update, thought I’d further investigate our latest drilling location.

You’ll note from the pictures below that Manlai-1S (named after a settlement in the area) is almost on the border of our PSC. I wondered why such a location was chosen and then I remembered the following lines from the announcement on 28th April relating to the prospect:

‘In another part of the 30,000 square kilometre PSC, Company is pleased to announce the completion of the first line in its 2021 2D Seismic Program. The line, which was acquired in the far North-East of the block shows “coal-like” reflectors from near surface to ~1,000m.

The line covers a new sub-basin that had not yet been explored in the block. Along trend there is evidence of coal in the CBM depth window in the region East of the PSC area.’



You can see in the image above that there is a very large basin that they are drilling into which appears to continue along trend north-east of our block.

Block X(s) south sits to the north and north-east of our PSC (Nomgon-IX) and I can see that mining work (not CSG) has been done on this block in the past. The whole region is mineral rich, especially in terms of coal, copper and gold etc, and to some extent related exploration drilling has taken place here.

Having coal in the ‘CBM depth window’ is significant as we all know that where there is coal there is likely to be gas (especially in our PSC as we have confirmed this in two basins). The ‘coal-like’ reflectors from near surface to 1,000m suggests that multiple CSG seams could be in place here.

I’m not proposing that there are gassy coals here, but all this augurs well. If the company was fully confident then there would be no need for the current shallow exploratory well. My hope, as with many others no doubt, is that shortly we’ll receive an announcement that Manlai-2S has spudded.

I’m also encouraged to see that they are returning to Yangir for the West-Yangir-1 core-hole. I’m personally particularly interested in the area along trend west of Yangir and I suspect that they may continue some of their exploration work here. The type of gas saturation (99%) that was seen at Yangir was impressive and bodes well for the area in terms of nearology.

Not forgetting that 10-15km north of Yangir there is Richcairn West and beyond that Richcairn, both of these proposed well locations sit within a very large depocentre. The extent of this half graben is in excess of 100km and had seismic completed on it in 2019/2020 and was followed up by further seismic in 2021. No doubt they will drill this basin at some point in time and that could be a company maker in itself.

For those of you who are experiencing an emotional roller coaster ride with the share price, keep in mind the big picture. The story is still unfolding. Also as a side note; Neil Young, our Managing Director, is our largest shareholder (combined holdings) and Stephen Kelemen, our CSG technical guru, contributed in the last SPP.

CSG companies in early stage exploration can be notoriously volatile when it comes to share price, and it appears EXR is no exception!

All IMO & DYOR. GLTAH.