- Elixir Energy (EXR) begins drilling the first of 24 planned wells on its Nomgon project in Mongolia
- During the weekend, the Tim-1S well was sunk marking the start of the company’s largest drilling campaign undertaken in the country
- Drilling will target Jurassic and Permian coals with an expected total depth of approximately 700 meters
- In the middle of this year, EXR plans to begin drilling an extended two-well pilot production program with a six-month fluid pumping program to follow.
- Shares of the company rose 3.13% to 16.5 cents
Elixir Energy (EXR) has started drilling the first of 24 planned wells on its Nomgon project in the South Gobi region of Mongolia.
Over the weekend, the Tim-1S exploration well was sunk, marking the start of the company’s largest drilling campaign in the country, as part of its exploration and appraisal program in under its coal bed methane production sharing contract (PSC).
The first well is located south of the Tavan Tolgoi Coal Mining area, where Elixir has mapped a potential coal deposit center.
The drilling was designed to target Jurassic and Permian coals, with an expected total depth of approximately 700 meters.
Elixir has hired three drilling companies to complete the 24-well program and said mandatory annual regulatory processes are nearing completion.
In the middle of this year, the company plans to begin drilling an extended two-well pilot production program with a six-month fluid pumping program to follow.
This is a campaign goal of the company and if successful will confirm commercial gas flows and facilitate a planned gas-fired power generation project in the Nomgon area.
Elixir said preparations for this work are on track and various long-term items are on their way to Mongolia.
“This year we are conducting the largest program we have ever undertaken in Mongolia and look forward to continued success on the exploration and pilot fronts,” said Elixir Chief Executive Neil Young.
“Notwithstanding the international events in Eastern Europe, we are pleased to see that business is continuing as usual in Mongolia.”
Shares in the company rose 3.13% to 16.5 cents at 10:43 a.m. AEDT.