Elixir’s Golden Horde acquisition opens up potentially giant gas resource
Energy junior, Elixir Petroleum (ASX:EXR), has completed its acquisition of Golden Horde (GOH), and is poised to accelerate exploration of the high-impact Mongolian coalbed methane (CBM) opportunity identified more than a year ago.
Elixir issued 79 million shares to complete the acquisition and, in what could be deemed as a vote of confidence, 80% of GOH’s shareholders voluntarily agreed to an escrow period of 12 months.
In September this year, GOH was awarded the Nomgon IX CBM production sharing contract (PSC) in Mongolia.
With an independently verified risked prospective resource of 7.6 trillion cubic feet of natural gas, this could be a company-making development for EXR, particularly given the project’s close proximity to the Chinese border.
Experienced CEO to shape exploration program
Over recent months, Elixir and GOH have been preparing for what will be an active 2019 exploration program designed to de-risk and prove up the giant prospective natural gas resource.
Former Santos executive, Neil Young, has joined the Elixir board and will take up the role of CEO.
With his Santos background, and with significant experience in CBM business development activities and commercialisation, Young’s direction in developing a sound exploration program should be invaluable here.
The Nomgon IX CBM PSC has recently been the subject of an independent prospective resource report completed by ERCE (Energy Resource Consultants Equipoise), which verified the world-class potential of the PSC area.
Young indicated that the company is in a position to quickly move to exploration in 2019, saying: “I am pleased that Elixir’s acquisition of Golden Horde is now finalised and all the necessary corporate, technical and commercial foundations to commence on-ground exploration next year in Southern Mongolia are in place.
“There is an exciting time ahead for all shareholders of Elixir as we seek to de-risk a potentially giant clean energy resource in the heart of Asia.”