After shutting-in production at its Nomgon-8 and 9 wells, Elixir Energy Ltd (ASX:EXR) has reported strong down-hole pressure build-up it says shows good reservoir support.
As part of the wholly owned Nomgon IX Coal Bed Methane (CBM) production-sharing contract (PSC) in Mongolia’s South Gobi Basin, the wells were successfully drilled in October last year by Major Drilling. The necessary down-hole and surface facilities were then installed, and gas began flowing in early November as part of a pilot production program.
Since then, Nomgon has continued to hit various milestones, most recently at the start of March when the two wells passed 200,000 standard cubic feet per day (scfpd) for the first time.
Following the completion of the shut-in period, Elixir intends to remove and replace all gauges in the two wells, clean and wash all cuttings from the wellbore, change and lower all down-hole pumps, and recalibrate all surface equipment. Given the notoriously harsh Gobi winters, the company said such activities are routine and will be completed within 10 days, with improved production efficiency to follow.
Production testing at Nomgon is expected to continue for another couple of months thereafter.
“The Nomgon pilot program is now entering the final data gathering and fine-tuning phase,” managing director Neil Young said.
“Our team in Mongolia continue to manage the wells carefully and are acquiring the maximum amount of data in preparation for the next regulatory and commercial phases that are intended to ultimately support development and production.”
Elixir prepares for 2023 exploration program
Now, Elixir is looking to launch its 2023 drilling program, with the standard government-mandated tendering process nearing completion.
Under its 2022 program, the company drilled at total of 11,576 metres at Nomgon, the results of which will inform the upcoming campaign. That work is expected to include a minimum of nine wells — four of which will be “appraisal” wells while the other five will be for exploration.
While Elixir noted in February that its exploration and appraisal budget for the year has already been approved by Mongolia’s petroleum regulator, the final location of the proposed wells is yet to be determined.
Written by Oliver Gray