The Conversation (0)
Elixir Energy Limited (“Elixir” or the “Company”) is pleased to provide an operations update on the work currently underway in its 100% owned Nomgon IX Coal Bed Methane (CBM) Production Sharing Contract (PSC) in the South Gobi Basin, Mongolia.
HIGHLIGHTS
- Nomgon Pilot Project returns to managed flare
- Nomgon-10 pilot well to spud at end of month
- Big Slope-7 intersects thick coals with good desorption and DST completed
Operations at the Nomgon Pilot Project continue, with the pilot plant now returning to managed gas production. During the last month, both wells have been produced intermittently whilst the production team varied casing pressures, pump rates and water levels. Water production throughout this has remained relatively static at rates of 110-120 barrels of water per day. Whilst the gas rate is still lower than the original flowrates at the beginning of the test, a clear increasing trend is now emerging.
The previously announced additional pilot well, called Nomgon-10, will spud towards the end of this month, using international drilling contractor Major Drilling. The existing pilot wells will be shut in during the drilling operation. At the completion of this new pilot drilling, the lesser performing Nomgon- 8 will be temporarily suspended, with the Nomgon-10 production well to replace it in the production system.
Recent flare at the Nomgon Pilot
The Big Slope-7 appraisal corehole has now been completed. The well was drilled to a depth of 666 metres, with drilling curtailed slightly ahead of the originally planned total depth due to difficult hole conditions. A total of 35 metres of coal and 7m of silty coal was intersected, with 1 Drill Stem Test (DST) conducted. The interpretation of the results of the DST will be announced in due course.
The well was drilled by Mongolian drilling contractor Erdene Drilling LLC and is the first of a number of wells it is contracted to Elixir for drilling in the region. The rig has now moved to a nearby location to the West of the previous well to drill a corehole: Big Slope Shallow-1, where it will appraise the shallower coals at deeper locations.
Erdene drilling rig at Big Slope 7
Erdene Drilling has also brought a second rig into the basin and will replace Top Diamond Drilling as the Company’s primary exploration drilling contractor. Top Diamond Drilling completed the drilling of the Bluebill-1S exploration well recently, with the well intersecting gaseous coal in cuttings.
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Elixir Energy
Overview
Elixir Energy (ASX:EXR) is a gas exploration and development company currently focused on its portfolio of natural gas assets in Queensland, Australia and Mongolia. As an early mover in both areas, Elixir Energy has been the first company ever to free-flow gas from the deep Taroom Trough in Queensland and flow gas of any description in Mongolia.
Elixir Energy’s Grandis Gas project in Queensland is located in the Taroom Trough in the Southern Bowen Basin, where Australia’s premier physical and commercial gas hub – Wallumbilla – is immediately adjacent. Market factors are now driving new rounds of drilling in the Taroom Trough contributing to its reputation as an emerging energy super basin with major electricity as well as gas infrastructure.
A successful free-flowing test was conducted on the Lorelle Sandstone and has indicated it could produce a commercial flow rate of gas, with the breakeven commercial initial flow rate estimated at 2.5 million cubic feet per day.
Gas flow from Stage 1 Lorelle Sandstone post stimulation
Elixir Energy’s Nomgon coal-bed methane (CBM) project is located in Mongolia.
The Nomgon CBM project is in the South Gobi region of Mongolia and on the Chinese/Mongolian border. The ideal location of the asset provides access to excellent infrastructure, including planned pipelines and local mines as customers. The Nomgon project includes a CBM pilot production plant, which flowed gas in its early stages and is now moving to progressively de-water with a view to building up a sustained gas flow rate.
The company is led by a highly experienced team with direct histories in Queensland, Australia and Mongolia and expertise in the natural resources industry, community engagement and working with government stakeholders.
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Early-mover in natural gas exploration and appraisal in Australia and Mongolia.