Elixir has spud CSG well amid management’s high expectations
Elixir Energy Limited (ASX:EXR) has advised that the much anticipated Nomgon-2 appraisal core-hole well was spud last night with management expecting it to reach total depth by the end of July or early August.
Elixir Energy is a gas exploration company focused on the 100% owned Nomgon IX coal-bed methane (CBM) production sharing contract (PSC) located in the South of Mongolia, proximate to the Chinese border.
The 30,000 square kilometre PSC was executed in September 2018 and has an exploration period of more than 10 years.
The Nomgon-2 well is intended to produce a similar suite of test results as its predecessor Nomgon-1.
These results will become progressively available after the well reaches its target depth and samples are either analysed on-site or sent to laboratories in Mongolia and China.
The company’s seismic contractor commenced the acquisition of 2D seismic on June 30 in the north-west part of the licence area.
The total 106 kilometre acquisition program should be finished by early August and subsequent processing will take around another month after that.
New areas of outcropping coal identified
Recent field work and data collection and analysis has identified new areas of coal outcropping in various parts of the PSC area.
The location of these is consistent with Elixir’s prospective resource estimates.
They support the view that the very large licence area is likely to host numerous coal bearing sub-basins that are prospective for coal seam gas.
Summing up his expectations regarding upcoming exploration activity, Young said, “Our appraisal and exploration program has now started in line with our plans and we look forward to receiving the results which will be integrated with the results of Nomgon-1 over the rest of this year.”