Elixir Energy Ltd (ASX:EXR) is working hard on the coal bed methane (CBM) exploration/appraisal program underway across its 100%-owned Nomgon IX CBM production sharing contract.
The company recently finished drilling the Tim-2 appraisal well – a follow-on from the successful Tim-1S exploration well drilled earlier this year.
Tim-2 well drilled
Tim-2 was drilled to a total depth of 1,020 metres – the deepest well Elixir has drilled in Mongolia to date. It logged 3 metres of coal and 5 metres of silty coal.
Localised faulting is the reason for the decrease in coal thickness from Tim-1 and Elixir will now integrate the Tim-2 results with geological mapping, age-dating and potentially new seismic to better define this coal-bearing sub-basin.
Newly hired drilling contractor Ellecohr LLC has recently spudded its first well for Elixir, Yangir-4, an appraisal well in the previously identified coal-bearing Yangir sub-basin.
Bulag Suuj-1S to spud later this week
The Top Diamond Drilling LLC rig that drilled Tim-2 has now mobilised to a new potential sub-basin in the west of the PSC and will spud the Bulag Suuj-1 well imminently.
Extended pilot production testing planned for mid-year continues to progress, with tendering for the civil works well advanced and a contractor expected to be hired shortly.
The company’s 2022 2D seismic acquisition program is proceeding as planned, with 223 kilometres, of a total of 322 kilometres, acquired to date.
Two rigs now operating
Elixir managing director Neil Young said: “The arrival of the Mongolian spring has allowed our multiple well program for 2022 to really accelerate and it is good to see two rigs now operating.
“Our pilot program – our and the country’s first – which is due to spud in mid-year – is on track.”