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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
- CBM discovery declared at Big Slope Location
- Nomgon-10 pilot well spuds
- Four drilling rigs running in the Gobi Basin for Elixir
Recent coring, desorption and testing at the Big Slope coal deposits have formally yielded a CBM gas discovery under Petroleum Resources Management System (PRMS) guidelines (Appendix 1), having proved the presence of gas saturated coal with adequate permeability.
Big Slope core holes and chip holes have intersected coal thicknesses of up to 59.5 metres, even though the full stratigraphic section is yet to be penetrated. A total of 3,510 metres has now been drilled in the Big Slope area, with a total of 259 metres of coal intersected. Elixir has measured consistent gas contents of up to 9 cubic metres per ton (on a raw gas basis) – with the expected strong correlation of increasing gas content with depth.
The most recently completed well, Big Slope Shallow-1 intersected 37 metres of coal in a well that was 321 metres deep. This measured permeability of 0.8 milliDarcies (mD) from a Drill Stem Test (DST) over a 6 metres coal seam, within an interval of 288.5 to 294.5 metres. Appraisal and testing of this area and the adjacent Yangir area continues.
Location map of Elixir Activity in Mongolia
Yesterday, Elixir spudded Nomgon-10. Nomgon-10 is an additional pilot well that will be connected to the Nomgon Pilot Production plant. The well is expected to take ~2 weeks to drill and should be connected and online within one month. Gas and water production from the Pilot Plant has been temporarily suspended until the simultaneous drilling operations are completed.
Drilling Rig at Nomgon-10
In total, Elixir is now operating 4 rigs in the Nomgon IX PSC, 2 with Major Drilling and 2 with Erdene Drilling. The program has been accelerated to ensure it is completed before the harsh Gobi winter begins.
Nomgon IX Drilling Schedule
Elixir’s Managing Director, Mr Neil Young, said: “Our drilling program in the Gobi is operating intensively at present and delivering strong results. We now have another formal discovery in the Big Slope area and we will continue to appraise across the key South West section of the PSC for the next few months before winter. On the Pilot side, Nomgon-10 should be online within a month and will add to the ongoing pilot data gathering process thereafter.”
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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.
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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.
Company Highlights
- Elixir Energy (ASX:EXR) is an exploration and development company with energy assets in Australia and Mongolia, targeting natural gas and renewable energy/hydrogen.
- The company’s Grandis Gas project in Queensland is located in an established gas and oil region, with exceptional access to existing infrastructure and high gas prices.
- The region is currently hosting multi-operator activity, including by Shell.
- Elixir has discovered a deep free-flowing gas zone in Grandis – the first of its kind.
- The company was also the first to flow natural gas in Mongolia, pioneering production in the country.
- A management team with a wide range of expertise in the natural resources sector provides leadership for maximising the value of Elixir Energy’s assets.
Key Projects
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 gas markets.
Project Highlights:
- Strong Local Infrastructure: The region's long history of oil and gas production has resulted in a robust infrastructure, including gas transportation and electricity transmission 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.
- Impressive Initial Flow Test Results: After a successful suite of DFITs, free-flowing test on the Lorelle Sandstone has been successfully stimulated. Elixir’s technical and economic modeling indicates the Lorelle Sandstone alone could produce a commercial flow rate of gas, with the breakeven commercial initial flow rate estimated at 2.5 million cubic feet per day.
- Project Expansion: In August 2024, Elixir was formally awarded a 100 percent working interest in ATP 2077 by the Queensland Government. The area is prospective for both deep and shallow gas, with an independently certified 2C resources of 173 billion cubic feet.
Daydream-2 Lorelle Sandstone Flow Testing*
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 passed a key production milestone of 200,000 square cubic feet per day in its early stages. Water production has progressed since these early flows with a view to de-pressuring the CBM reservoir, leading to sustained gas flows.
- 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.
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 to explore 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.
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 several unlisted companies.
Progress on Approval of an Environmental Impact Assessment (EIA) Nxuu Deposit Infill Drilling Programme
The final EIA was lodged with DEP early in February 2024.
On 4 September 2024, the DEP in Maun, Botswana, emailed the Company’s Environmental Consultants advising that following its review of the Revised EIA for the Nxuu Project it can now proceed to the next step being a Public Review of the Environmental Impact Assessment (EIA) for the Nxuu Deposit Infill drilling programme.
DEP has requested the Company submit a draft public review notification to them for endorsement prior to placement in a Government Gazette and newspaper, inviting written comments and/or objections. The draft notification should state:
a) The nature and magnitude of activity.
The nature and magnitude of activity can only be described as being negligible, consisting of some 2,600m of infill HQ diamond core drilling.
b) The location of the activity.
The location of the activity is within Tribal Land used for cattle grazing.
c) The anticipated environmental impacts of the activity.
The anticipated environmental impacts of the drilling activity can only be described as being negligible as previous drilling in the area has all been approved by local communities.
d) The proposed mitigation measures to respond to negative environmental impacts.
Mitigation measures to respond to negative environmental impacts have not been required when conducting previous drilling. The HQ diamond core is cased for extraction. Chemicals used during cased core extraction do not cause any environmental hazards. All onsite personnel are required to comply with the Company’s Environmental Plan.
Progress Summary
The Company has now reached a stage where:
- A DRAFT of a proposed FINAL EIA was approved by DEP on 21 December 2023.
- After amendments requested by the DEP and applied to the DRAFT EIA, DEP advised on 4 September 2024 that the Final EIA, subject to their endorsement, is now ready to proceed to the Public Review stage.
- This allows for the publication of a FINAL EIA to be reviewed and responded-to within a two-week timeframe, by anyone involved in the area.
- Subject to there being no further issues raised through the publication of the EIA, the timeframe to the completion of the EIA review period is estimated to be in the region of four to six weeks.
- This will then allow the Company to schedule its 2,600m program of infill HQ diamond core drilling at the Nxuu Deposit, which will enable preparation of a Pre-feasibility Study to be followed by a Definitive Feasibility Study.
Prospecting Licence PL43/2016 – 100% Owned and Operated by MTB
Click here for the full ASX Release
This article includes content from Mount Burgess Mining 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.
MCA Announces Women in Resources Award Winners
A former mining opponent, a brilliant materials engineer and a respected leader in the male-dominated offshore drilling space are among the winners of Australia’s 2024 Women in Resources National Awards announced in the nation’s capital this week.
Queensland University of Technology PhD student and BHP portfolio lead Ashara Moore followed up her Exceptional Young Woman in Queensland Resources award earlier this year by taking out the national award.
Group manager of materials and innovation at Western Australia-based Callidus Process Solutions, Dr Evelyn Ng, took out the Maptek Woman in Resources Technological Innovation award.
Dr Evelyn Ng
Head of energy group Woodside Energy’s global wells and seismic arm, Josie Fourie, received the Dyno Nobel Exceptional Woman in Australian Resources award. The winner of the 2024 WA Outstanding Woman in Resources award is a chemical engineer who has spent 25 years in the upstream energy sector, becoming the most senior woman in offshore drilling in Australia.
Josie Fourie
Moore, Ng and Fourie were among 29 women and four organisations nominated for six awards at the 11th annual Women in Resources National Awards in Canberra, hosted by the Minerals Council of Australia in partnership with the New South Wales Minerals Council, the Queensland Resources Council, the Chamber of Minerals and Energy WA, the Tasmanian Minerals, Manufacturing and Energy Council and the South Australian Chamber of Mines and Energy.
The awards are supported by Women in Mining Network state branches.
Queensland-based Kanae Dyas, workplace support manager at Anglo American, took out the Rio Tinto Inclusion and Diversity Champion in Australian Resources Award.
Nadine Hill, an openpit supervisor at Evolution Mining’s Cowal gold operation in NSW, won The Bloomfield Group Outstanding Tradeswoman/Operator/Technician Award.
Major mining services group Thiess headed four groups who were vying for the Mitsubishi Corporation Development Diversity Programs and Performance Award with its Mt Arthur South Indigenous/Inclusive Trainee Employment nomination.
WA Chamber of Minerals and Energy CEO Rebecca Tomkinson said Fourie and Ng were shining examples of the growing pool of talented women breaking new ground in the resources industry.
“Women comprise a growing proportion of the sector’s work force and they’re not just making up the numbers. In so many instances they are highly respected leaders driving innovation in their fields,” Tomkinson said.
“The industry has a long-standing focus on improving diversity. The benefits of that approach are on full display through the field of hugely impressive finalists selected for the 2024 awards.
“While much work has already been done, boosting female participation – from mine sites and laboratories through to the boardroom – remains a priority for the sector.
“Highlighting the achievements of exceptional women like Josie Fourie and Dr Evelyn Ng is a vital part of continuing to promote diversity and attracting the next generation of inspirational leaders.”
Ng, who started her career with First Quantum Minerals at Africa’s largest copper mine in Zambia, has worked on five continents and in her current role at Perth-based Callidus is said to be the only materials engineer among more than two dozen mechanical engineers in a company with over 300 employees.
Ng leads forensic investigations of plant and machine failures, developing quality assurance specifications, as well as overseeing the group’s R&D and intellectual property.
Two recent Callidus patents – one for a bi-metallic coating system and another involving titanium-nitride surface hardening – are seen to have potential to be game-changers in the mining industry.
Ashara Moore, who wants to change tailings management in mining, admitted in an interview after she won a 2023 Women in Industry Award in Queensland she had gone into a work experience interview with Rio Tinto “morally opposed” to the industry.
She said after early exposure to the industry and then starting her career she came to see it “was trying to do and be better [and] it was a sector that I thought I could make a positive difference within”.
Through her QUT PhD study Moore wants to develop a new carbon reduction technology (CRT) that can help mines cut emissions and positively impact future management of tailings.
“I am pro finding solutions to ensuring that our sector can peacefully co-exist with our environment,” Moore has said.
“Tailings management … is the avenue in which I wish to play my part.
“My PhD study is just one very small, very niche segue toward achieving that goal.
“By targeting mining waste, one of the most substantial potential environmental impactors within industry, and hopefully finding more sustainable and responsible ways of managing this waste, I hope to contribute to the ESG agenda gaining momentum in the sector.
“I am hoping to achieve a new normal about the way we think about tailings waste.”
Last August she presented her preliminary findings to the World Chemistry Conference in the Hague, Netherlands.
IMARC applauds winners of this year’s 2024 Women in Resources National Awards.
So far, more than 130 confirmed speakers at this year’s International Mining and Resources Conference in Sydney are women, ranging in roles from the C-suite through to undergraduate students. IMARC's Balance for Better commitment also includes the working partnerships with industry groups IWIMRA, WISER, WIMnet NSW, WIMARA, to name a few.
IMARC chief operating officer Anita Richards says the large contingent of female speakers reflects the event’s “unwavering commitment to balance for better, an initiative dedicated to promoting equality, diversity, and inclusion throughout the mining sector”.
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