Elixir Energy Ltd (ASX:EXR, OTC:ELXPF) managing director Neil Young joins Jonathan Jackson in the Proactive studio to discuss progress at its fully owned Nomgon IX Coal Bed Methane (CBM) Production Sharing Contract (PSC) in the South Gobi Basin of Mongolia. The Mongolian Pilot Plant has produced more than 73,000 barrels of water since its inception, with current daily water production stabilising at approximately 280 barrels per day, the highest recorded from the Nomgon-9 and Nomgon-10 wells. The CBM field is experiencing a steady reservoir pressure decrease at a rate of around 5 psi per month. If this trend persists, gas desorption breakthrough is expected before the end of 2024.
Production operations are concentrated on water management, with small volumes of gas from the annulus not being flared to maintain system stability. Plans for two additional pilot wells in 2024 have been deemed unnecessary for aiding gas desorption. Misting devices will soon be added to the water disposal pond to enhance evaporation.
Young, expressed satisfaction with the stable water production and understanding of reservoir pressure decline, anticipating gas production by late 2024. He credited the Production and Operations Team in Mongolia for their safe and environmentally responsible efforts in achieving this milestone.