Nomgon CBM Operations Update

Source Company Press Release
Company Elixir Energy Limited
Tags Country: Mongolia, Segment: CBM/CSG, Upstream: Drilling Activity, Upstream News
Date June 13, 2023

HIGHLIGHTS

  • Bluebill-1S exploration well spudded
  • Pilot production continues
  • Appraisal drilling due to start soon

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.

The well is situated 18 kilometres East of the Nomgon Pilot Production Plant and is the first well to be drilled in our 2023 low cost exploration drilling campaign.

Operations at the Nomgon extended pilot test continue. Water flow-rates at Nomgon remain steady at 130 barrels per day. Gas flow rates are currently variable as we experiment with choke size, casing pressure and fluid level to optimize coal depressurization. A location for an additional pilot well has been identified and the relevant environmental and other approvals are being pursued.

The appraisal drilling campaign planned at Big Slope and Yangir is due to commence shortly, with both Major Drilling and Erdenes Drilling assisting Elixir in this program.

The Company’s previously announced 9 CBM well drilling campaign for 2023 accordingly remains on track. At Elixir’s direction, drilling contractors have significantly improved their drilling capability for the 2023 program, with all rigs now incorporating enclosed mud systems which should assist in increasing penetration rates and stabilizing the holes.

Elixir’s Managing Director, Mr Neil Young, said: “We are pleased to commence 2023’s exploration drilling campaign in what are now excellent weather conditions – which will also benefit the appraisal drilling due to start soon. Later this year we aim to also see the Company’s operations add drilling in Australia for the first time. We are very much looking forward to the multiple sources of potentially very positive news flowing from all of these activities.”

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