One well down, plenty to go for Elixir

2 minute read

By Trevor Hoey. Published at May 27, 2021, in Energy

Elixir Energy Limited’s (ASX:EXR) Cracker-1S well has reached a target depth of 563 metres, intersecting Triassic sequences.

Management was hoping that Permian sequences would be intersected, but to put this in perspective this well is just one of many to be drilled in an extensive exploration program at the Nomgon IX Coal Bed Methane (CBM) Production Sharing Contract (PSC) in Mongolia.

The Cracker-1S exploration strat-hole, located in the far North-West of the PSC was the first ever well in the local sub-basin and was drilled on seismic acquired in 2020, reaching a target depth of 563 metres.

This was a step-out well with far more variables and uncertainties than have been the case with the company’s numerous successful wells, and the most significant takeaway is that it will still provide valuable information in terms of the group’s future exploration strategy.

The well has been remediated and the Erdene Drilling LLC rig is now moving to drill the West Yangir1 core-hole.

This core-hole should provide valuable information as it is intended to provide data for a first stage production test well planned for later in the year as the company moves to expand its exploration and appraisal program to include multi-stage and multi-location production testing.

In further promising news, COVID-19 restrictions in Mongolia have eased, and the second drilling company contracted by Elixir has now moved a rig into the PSC area.

The new rig will initially drill a shallow exploratory well, Manlai 1S, in a new sub-basin in the far North-West of the PSC, 130 kilometres from the Nomgon Discovery (see below).

The well is targeting shallower Permian sediments, and this will be followed up by a deeper well in the same sub-basin upon confirmation of encountering the Permian stratigraphy.

Seismic programme to identify targets for expanded field program

Elixir’s 2021 2D seismic program has been proceeding swiftly and it has now acquired 140 kilometres of new seismic.

This is being processed rapidly in order to feed the multi-rig drilling program.

Elixir is currently finalising locations for new seismic lines to be shot as part of the company’s expanded field program.

As flagged in the company’s last quarterly report, a SODAR (Sonic Detection and Ranging) unit has now arrived in Mongolia and is being deployed into the area of current field operations to measure renewable energy resources.

Discussing the much improved operating environment in terms of accelerating expansion, while reinforcing Elixir’s low-cost “rinse and repeat” strategy, managing director Neil Young said, “We are pleased to finally welcome our second Mongolian drilling company – Top Diamond Drilling – into the field in yet another of the many sub-basins in the PSC.


View Our Investment Portfolios


S3 Consortium Pty Ltd (CAR No.433913) is a corporate authorised representative of LeMessurier Securities Pty Ltd (AFSL No. 296877). The information contained in this article is general information only. Any advice is general advice only. Neither your personal objectives, financial situation nor needs have been taken into consideration. Accordingly you should consider how appropriate the advice (if any) is to those objectives, financial situation and needs, before acting on the advice.

Conflict of Interest Notice

S3 Consortium Pty Ltd does and seeks to do business with companies featured in its articles. As a result, investors should be aware that the Firm may have a conflict of interest that could affect the objectivity of this article. Investors should consider this article as only a single factor in making any investment decision. The publishers of this article also wish to disclose that they may hold this stock in their portfolios and that any decision to purchase this stock should be done so after the purchaser has made their own inquires as to the validity of any information in this article.

Publishers Notice

The information contained in this article is current at the finalised date. The information contained in this article is based on sources reasonably considered to be reliable by S3 Consortium Pty Ltd, and available in the public domain. No “insider information” is ever sourced, disclosed or used by S3 Consortium.

Australian ASX Small Cap stocks | Why Finfeed.com is Australia’s leading small cap publication

Founded seven years ago, Finfeed.com is Australia’s leading and longest standing website for investor and finance news, education and expert opinion.

Published by StocksDigital, Finfeed was created to report daily on the comings and goings of ASX listed stocks in the small cap market.

As the first digital publication dedicated specifically to this space, Finfeed soon became the most trusted publication in the market, quickly garnering over two million page views – a number that continues to rise.

Finfeed.com provides its readers with informative articles that tackle the latest in market moving #ASX small cap news, plus exclusive content you won’t find anywhere else. It is aimed at those with an interest in investing, market education, company performance, start-ups and much more.

Finfeed.com is the only media organisation operating under the strength of a Financial Services License and is backed by leading journalists and analysts all with brands of their own.

The website aims to inform, educate and entertain with content that drills down into the heart of financial matters.

Finfeed is a leading source of investor and market information, with everything investors need to know about how to invest written in a way that anyone can understand. 

Over the years, the website has expanded beyond exclusively reporting on small caps, to profile Australia’s leading ASX listed small, mid and large caps as well as some of the country’s most successful CEOs and business leaders to find out what makes them tick.

Every day you will find fresh content covering:

Fast Facts

Over 4,000 articles published

Over 2.3 Million Page Views and counting

Over 10,000 followers on social media

Subscriber list growing by 2% monthly

Thanks for subscribing!

X