Elixir makes progress in Mongolia
Elixir Energy Ltd, Adelaide, has spudded the Nomgon-2 appraisal core hole in its Nomgon IX coal seam gas (CSG) production sharing contract (PSC) area in southern Mongolia close to the border with China.
The company expects to reach total depth near the end of July or early August with a full suite of tests to begin immediately afterwards.
Elixir is hoping the results confirm results received from its Nomgon-1 well that was reported as a CSG discovery in February.
Laboratory adsorption test results on a sample taken from this initial hole indicate the main 100 series coal seam to be “near fully gas saturated,” the company said.
This means that pilot production design may be simpler and cheaper, the company said. If Nomgon-2 results are also good, Elixir aims to conduct a pilot production test in 2021.
Additionally, Elixir said the 2D seismic acquisition programme which began on the 30th June in the north-west sector of the 30,000 square kilometre licence area should be complete by early August with data processing completed by September.
Already, recent field work, data collection, and analysis have identified new areas of coal outcropping in other parts of the PSC.
Elixir says this supports the view that the licence area is likely to host numerous coal-bearing basins which are prospective for CSG.
Source: Oil& Gas Journal