Elixir Energy Ltd (ASX:EXR) has notched up another milestone at its Nomgon IX Coal Bed Methane (CBM) Production Sharing Contract (PSC) in Mongolia with the pilot production project achieving a daily gas flow rate of 200,000 cubic feet.
The extended pilot production project in the country’s resource-rich South Gobi Basin has been operating successfully for more than 100 days.
This week the combined production from the Nomgon-8 and 9 wells reached 200,000 standard cubic feet per day (scfpd) of gas for the first time, as the pilot continues to depressurize.
Delivering the goods
Elixir’s managing director Neil Young said: “Our Nomgon pilot project continues to deliver the goods with an excellent flow rate from what are simple and shallow vertical wells.
"The pilot will continue in the weeks to come and we will provide further updates as it moves towards its conclusion.”
Impressively, the Nomgon-9 well exceeded 150,000 scfpd, or 75%, of the total.
This comes hot on the heels of the 100,000 scfpd milestone achieved a month ago.
READ: Elixir Energy reaches new production milestone at Mongolian CBM pilot project; shares up
The Nomgon CBM PSC is in the South Gobi region of Mongolia, close to China.
Low water rates
Elixir Energy is also encouraged by the continued stable and low water rates of 150 barrels per day.
The company is preparing to kick off the 2023 drilling program next month as planned with standard annual approval processes being progressed.
About Nomgon PSC
Elixir is primarily focused on an exploration and appraisal program in Mongolia targeting natural gas in the form of coal-bed methane (CBM).
The company holds 100% of the Nomgon CBM PSC just to the north of the Mongolian/Chinese border which covers around 30,000 square kilometres.
Nomgon has access to infrastructure including power lines, roads (sealed road from Ulaanbaatar through the PSC and into China) and rail, accessing the thousands of trucks shipping coal into China from the major mines of Tavan Tolgoi and Oyu Tolgoi, which are within the boundary of Elixir’s PSC.