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.
Click here for the full ASX Release
This article includes content from Elixir Energy, licensed for the purpose of publishing on Investing News Australia. This article does not constitute financial product advice. It is your responsibility to perform proper due diligence before acting upon any information provided here. Please refer to our full disclaimer here.
EXR:AU
Elixir Energy Investor Kit
- Corporate info
- Insights
- Growth strategies
- Upcoming projects
GET YOUR FREE INVESTOR KIT
Elixir Energy
Overview
Elixir Energy (ASX:EXR) is a gas exploration and development company currently focused on its portfolio of natural gas and hydrogen assets in Mongolia and in Queensland, Australia. As an early mover in Mongolia, Elixir Energy is the first company ever to flow gas in the country.
The clean hydrogen market is rapidly emerging and is expected to become an ever-expanding part of the global energy mix by 2030. This projection sets the stage for Elixir Energy to reach production from its in-development Gobi H2 hydrogen project in Mongolia and have an early mover advantage in a sector that is attracting global attention from the world’s largest companies.
Elixir Energy recently began developing the Gobi H2 green hydrogen project in Mongolia. The project has exceptional renewable resource inputs and the potential to become a world-class hydrogen asset. The company has a maturing 50/50 partnership with Japan’s Terras Energy in this project which earlier this year moved to the point of Term Sheet execution.
There are two compelling advantages to developing hydrogen assets in Mongolia: access to very high quality renewable energy and proximity to the emerging hydrogen market in China – likely to be the world’s largest. In addition, Elixir Energy has the long-term potential to deliver hydrogen to China by pipeline rather than by boat, a significant cost advantage as development progresses.
In addition to the Gobi H2 hydrogen project, Elixir Energy’s Nomgon coal-bed methane (CBM) project is also 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 earlier this year passed an important milestone of 200,000 standard cubic feet per day (SCFPD)
Recent flare at the Nomgon plant.
In Queensland, Elixir Energy acquired the Grandis Gas project last year and is currently moving towards drilling the Daydream-2 appraisal well in October 2023, that will seek to materially increase contingent resources, possibly book initial reserves and confirm liquids content.
The company is led by a team of managers with direct experience in Australia and Mongolia and expertise in the natural resources industry, community engagement and working with government stakeholders.
Company Highlights
- Elixir Energy (ASX:EXR) is an exploration and development company with energy assets in Mongolia and Australia, targeting both natural gas and renewable energy/hydrogen.
- The company was the first to flow natural gas in Mongolia, pioneering production in the country.
- Elixir has two projects in Mongolia and a growing gas resource in Australia that cover a range of ever-cleaner energy sources of the type global markets are increasingly demanding.
- The market for clean hydrogen has been steadily growing as technology has improved and carbon reduction goals have increased, allowing Elixir’s Gobi H2 hydrogen project to potentially commence production just as demand skyrockets.
- The Gobi H2 project is also near China – allowing delivery by pipeline rather than boat, facilitating much lower-cost deliveries.
- Elixir’s confidential pre-feasibility study (PFS) results led to an expanded memorandum of understanding with Terras Energy (now majority-owned by a member of the Toyota group), providing a framework to enter into a binding 50/50 joint venture.
- Elixir Energy’s Nomgon CBM asset’s pilot plant surpassed the initial milestone of 200,000 square cubic feet per day and has recently been expanded with another well being added.
- The company’s Grandis Gas project in Queensland is located in an established gas and oil region and is moving towards a very high-impact appraisal next month.
- A management team with a range of expertise in the natural resource sector leads Elixir Energy towards capitalizing on its assets.
Key Projects
Gobi H2 Hydrogen Project
The Gobi H2 project aims to capitalize on emerging opportunities in the clean hydrogen market. The project is ideally located for cost-effective transportation, and the company is aiming to enter into FEED for an initial pilot plant.
Project Highlights:
- Pre-feasibility Study (PFS): Elixir Energy has procured a PFS to support the development of a pilot plant as the project takes steps forward to reach full production.
- Partnership with Terras Energy (renamed from SB Energy following its acquisition by Toyota Tsusho): The company recently signed a Term Sheet with SB Energy to explore and develop the asset mutually. Terras Energy is already operating a world-class wind farm in the region and will lend its expertise to Elixir’s future plans for the asset.
- Ideal Hydrogen Delivery Cost: A significant advantage of the project is the potential for much lower delivery costs once production begins. The project would facilitate delivery by pipeline, allowing the company to transport hydrogen by land, rather than sea, creating significant cost savings.
Nomgon CBM Project
Elixir Energy’s 100-percent-owned coal-bed methane (CBM) project is ideally located in the South Gobi region of Mongolia. This location gives the asset access to robust local infrastructure and close access to Chinese energy markets – the world’s largest.
Project Highlights:
- CBM Pilot Project In Production: The pilot plant has passed a key production milestone of 200,000 square cubic feet per day earlier this year. Water production has also remained stable at ~150 barrels per day. Both of these results are promising as the asset continues to move forward – with another pilot well currently being added to the Project.
- 2023 Drilling Program Underway: Exploration began in 2019, and the first CBM discovery was made in 2020. The 2023 drilling program is currently underway.
- District-scale Asset: The Nomgon project covers a significant 30,000 square kilometers in Mongolia. Initial exploration campaigns have been promising and indicate the potential for the asset to become a significant producer of regional energy markets.
Grandis Gas Project
The company’s asset in Queensland, Australia, covers approximately 1,000 square kilometers in an established oil and gas province. The project is well-suited for cost-effective transportation to domestic and international oil markets.
Project Highlights:
- Strong Local Infrastructure: The region's long history of oil and gas production has resulted in a robust infrastructure, including transportation and power access – and community support for the industry.
- Adjacent to Current and Proposed Pipelines: The asset is located close to existing – and proposed gas pipelines to assist in efficient and low-cost transportation as production commences.
- Well Planning Underway: Elixir Energy is currently working towards spudding the Daydream-2 appraisal well in October this year.
Management Team
Richard Cottee - Non-executive Chairman
Richard Cottee was appointed as the non-executive chairman of the company on April 29, 2019. Cottee was the managing director of coal-seam-gas(CSG)-focused Queensland Gas Company (QGC) during its growth from a $20-million market capitalization junior explorer through to its acquisition by BG Group for $5.7 billion. QGC’s CSG assets are now operated by Shell and produce gas that is sold to China and other LNG markets.
Originally a lawyer, Cottee has spent the vast majority of his career in senior executive roles in the energy industry, including as CEO at CS Energy, NRG Europe, Central Petroleum and Nexus Energy. A 32-year veteran of the industry, Cottee is a strong business development professional and a graduate of The University of Queensland.
Neil Young - Managing Director and Chief Executive Officer
Neil Young was appointed to the board of Elixir on December 14, 2018, as its chief executive officer. Young has more than 20 years of experience in senior management positions in the upstream and downstream parts of the energy sector, focusing on business development, new ventures, gas marketing and general commercial functions. He has worked for a range of companies in the UK and Australia, including EY, Tarong Energy and Santos. Young founded Golden Horde Ltd in 2011 with a view to exploring gas on the Chinese border in Mongolia. He has also developed various new ventures in other countries including Kazakhstan, Japan and the USA. Young has an M.A. (Hons) joint degree in economics/politics from the University of Edinburgh.
Stephen Kelemen - Non-executive Director
Stephen Kelemen was appointed as the non-executive director of the company on May 6, 2019. Kelemen led Santos’ coal seam gas (CSG) team from its inception in 2004 and drove the growth in this area that allowed Santos to become one of Australia’s leading CSG companies. An engineering graduate from Adelaide University, Kelemen served Santos for 38 years in multiple technical and leadership roles.
Kelemen is currently an adjunct professor at the University of Queensland’s Centre for Coal Seam Gas and also acts as a non-executive director on the boards of Galilee Energy (ASX:GLL) and Advent Energy Ltd.
Anna Sloboda - Non-executive Director
Anna Sloboda was appointed as the non-executive director of the company on October 1, 2020. Sloboda is a joint Belarusian/Australian citizen and has more than 20 years of experience in corporate finance, and in developing junior resource companies operating around the world.
Sloboda is currently an executive director of Red Citadel Resources Pty Ltd, a privately owned mineral resources exploration company with a range of projects in Africa and South America. She also serves as an advisory committee member, maritime archaeology, at the Western Australian Museum.
Previously she was a co-founder of Trans-Tasman Resources and in that capacity had substantial experience in dealing with Chinese off-takers and partners. Other prior employers include Lehman Brothers, Clough and Curtin University.
Sloboda has a Master of Economics from Belarusian University and an executive MBA from Melbourne Business School.
Victoria Allinson - Company Secretary and Chief Financial Officer
Victoria Allinson is a fellow of The Association of Certified Chartered Accountants, a fellow of the Governance Institute of Australia and an NSX-nominated advisor. She has more than 30 years of accounting and auditing experience, including senior accounting positions in a number of listed companies and was an audit manager for Deloitte Touche Tohmatsu. Allinson has gained professional experience while living and working in both Australia and the United Kingdom.
Her previous experience has included being company secretary and CFO for a number of listed companies, including ASX-listed: Kiland, Safety Medical Products, Marmota Limited, Centrex Metals, Adelaide Energy, Enterprise Energy NL, and Island Sky Australia as well as a number of unlisted companies.
EIS Grant for Minnie Springs Copper Porphyry Drilling
- Augustus Minerals has been granted a co-funded drilling grant of up to $110,000 for 2 x 700m deep diamond drill holes under the WA Government’s Exploration Incentive Scheme (EIS) for the Minnie Springs prospect.
- The deeper diamond drill program is designed to test and to provide a 550m deep, 1km wide geological/geochemical/structural cross-section through the large 3km long by 1km wide copper moly porphyry system, linking the Mo mineralised leucogranite to the extensive Cu in soil anomaly to the northeast.
- Previous RC drilling at Minnie Springs intersected mineralisation, geology and alteration halo consistent with the zoning of a large porphyry copper / moly system.
Andrew Ford, GM Exploration
“The Company is pleased to receive an EIS grant to complete deeper drilling at the Minnie Springs Copper Molybdenum Project. The resultant data will enable mapping of the lithology and alteration to a depth of 550m and potentially intersect, or provide vectors to, higher grade Mo-Cu mineralisation using a Mo-Cu porphyry geological model”.
Minnie Springs
Minnie Springs hosts porphyry related copper molybdenum mineralisation previously drilled and defined by Catalyst Metals. A molybdenum Exploration target has been defined for the historicdrillingareacomprisedofbetween12-84Mtasoutlinedbelow (Table 1 and Figure 1, 2.)1.
Table 1. Exploration target size estimate for Minnie Springs Molybdenum depositNote: Based on ~300 ppm cut-off at 100% recovery.
The potential quantity and grade of the exploration target is conceptual in nature, there has been insufficient exploration to estimate a Mineral Resources, and it is uncertain if further exploration will result in the estimation of a Mineral Resource.
The planned diamond drilling will complement the recently completed 3,200m RC drilling program that infilled around hole MSRC012 (18m @ 0.37% Cu and 9.7 g/t Ag from 94m downhole, and 16m @ 0.38% Cu and 19.4g/t Ag from 121m downhole2) and tested the northern half of the 2km long copper-in soil anomaly. Assays from this program are expected to become available over the next month.
The limited exploration in the region, highlighted by 95% of the Ti-Tree project having no previous exploration, demonstrates the prospectivity of this underexplored mineral province.
Click here for the full ASX Release
This article includes content from Augustus Minerals, licensed for the purpose of publishing on Investing News Australia. This article does not constitute financial product advice. It is your responsibility to perform proper due diligence before acting upon any information provided here. Please refer to our full disclaimer here.
Quarterly Activity Report 31 March 2024
Figure 1. Fiery Creek Copper Prospect/Yataga Granodiorite summarizing rock (brown diamonds) and termite mound sample results (black crosses)
Continuing with its primary exploration focus on the Georgetown project in the latter half of 2023, EMU received assay results during the quarter from its second, in field reconnaissance work. The geochemical sampling programme covered the Fiery Creek high grade copper vein swarm and the Snake Creek prospects with significant element results returned from the Fiery Creek Copper (elevated Cu-Au-Ag-Bi-In-Pb-Sb-Te) and Snake Creek (elevated Pb-Ag-Au-Sb).
Whilst the survey was cut short due to inclement weather, EMU was encouraged by the significant success reflected in the assays results. The results from mineralogical studies confirmed EMU’s interpretation of an indicative, scale Copper-Porphyry system at the Fiery Creek prospect and was a highlight of the survey with new information building on the scale and potential of the prospect1.
Assay results returned included:
- Fiery Creek rock assay results up to 23.5% Cu, 0.27ppm Au, 460ppm Ag, 1.9% Bi, 89ppm In, 2.7% Pb, 667ppm Sb, 1470ppm Zn2.
- evidence of strong potential for the presence of critical and strategic minerals (Cu, Bi, In), with precious and base metals.
- evidence of alteration mineralogy, mineralisation geochemistry and areal extent of the Fiery Creek quartz-Cu-Bi vein swarm strongly suggesting a previously unrecognised subjacent porphyry Cu-Mo system.
- Yataga Granitoid Complex termite mound and coincident rock chip sampling returned several anomalous polymetallic zones for follow up.
- Snake Creek Prospect assays returned 0.20ppm Au, 390ppm Ag, 22.4% Pb, 464ppm Sb1.
Significant results were returned from the Fiery Creek Copper prospect with elevated Cu-Au- Ag-Bi-In-Pb-Sb-Te and from the Snake Creek prospect with elevated Pb-Ag-Au-Sb.
The elevated pathfinder element results and a macro-petrology assessment3 of rock samples completed by Mr Nigel Maund, Consulting Economic Geologist, from the previously unexplored Fiery Creek Prospect, point to the discovery of a porphyry copper system.
The sampling program assessed a number of high-priority prospects within the Georgetown Project tenements utilising termite mound and outcrop rock chip geochemistry. A total of 46 rock chip and 489 termite mound samples were collected across eight prospects.
Click here for the full ASX Release
This article includes content from EMU NL, licensed for the purpose of publishing on Investing News Australia. This article does not constitute financial product advice. It is your responsibility to perform proper due diligence before acting upon any information provided here. Please refer to our full disclaimer here.
Basin Energy Mining Exploration Entity or Oil and Gas Exploration Entity Quarterly Cash Flow Report
Click here for the full ASX Release
This article includes content from Basin Energy, licensed for the purpose of publishing on Investing News Australia. This article does not constitute financial product advice. It is your responsibility to perform proper due diligence before acting upon any information provided here. Please refer to our full disclaimer here.
Elixir Energy Investor Kit
- Corporate info
- Insights
- Growth strategies
- Upcoming projects