Elixir (ASX:EXR) fires on high purity gas

Elixir Energy gas production has hit its straps with low water content gas flowing at 100,000 cubic feet per day at its extended pilot production project, part of the Company’s 100% owned Nomgon IX Coal Bed Methane pilot programme in Mongolia’s South Gobi Basin.

The 83-day-old two-well coal dewatering program enjoyed an early gas production breakthrough from near 100% gas-saturated coals at the Nomgon-9 well on the first day of pumping.

Production Profile of Chinese CBM well1 with Nomgon 9 plotted for comparison.

Last week, the additional supply brought on Nomgon-8 lifted production to 100,000 standard cubic feet per day of gas and 180 barrels per day of water, which continues to improve steadily.

“Although our ground-breaking Nomgon pilot production test has some months still to go, results to date have been very encouraging,” Managing Director Neil Young said,

“The high gas saturation levels in the coals means minimal water production and very early gas breakthrough – both of which support long term economics.

“The gas flows to date are better than regional peers in producing gas fields and in Mongolia we face a long term lower drilling cost environment than in the likes of Australia – which also supports the economics.

We look forward to progressing our CBM program in Mongolia this year – now in parallel with our other major projects – Grandis and Gobi H2.”

Price Action

Elixir Energy (ASX: EXR) shares have risen 3.85% to 13.5c in morning trade.

Next Steps

The final location of the wells will be determined in the coming months, with the drilling program to begin in Q2 of 2023, following required annual re-tendering, environmental approval and other administrative processes.

Fundamental Data

Please note the following valuable information before using this website. 

Independent Research 

Market Open Australia is intended to be used only for educational and informative purposes, and any information on this website should not be taken as investment advice or guidance. It is important to conduct your own research before making any investment decisions, which should be based on your own investment needs and personal circumstances. Any investment decisions based on information contained on this website should be taken in line with independent financial advice from a qualified professional or should be independently researched and verified.