ELIXIR ENERGY DISCOVERS THICK OIL SEAMS AT NOMGON IN SOUTH MONGOLIA

February 06, 2020

Elixir Energy Limited based in Adelaide, Australia, provided an update on its drilling operations in its 100% owned Nomgon IX CBM PSC. Elixir’s key objective for its first exploration campaign has been to discover thick gassy coal seams below 300 metres. The results to date of the Nomgon-1 well have met that goal. The Company’s Nomgon-1 core-hole well (location of current well marked on map on next page) has now reached a total depth (TD) of 491 metres. Logging will commence shortly and will be followed by permeability testing. Well site geologists have measured total net coal of 82 metres of which 63 metres is deeper than 300 metres. The thickest coal seam below this 300 metre cut off point measures 51 metres (from 373 to 424 metres). The logging will deliver a more accurate figure shortly. The vertical well indicated synclinal coal seams. The well-site geologists have described the observable coal qualities to dominantly be C3-C4 on the AS 2519-1993 Guide to technical evaluation of higher rank coal deposit’s brightness scale. This is considerably better than encountered at the Ugtaal-1 well. Furthermore, the coals are visibly fractured and cleated, which bodes well for their permeability. Abundant gas bubbling from the recovered core was noted across the whole interval prior to it being representatively sampled for gas content desorption measurement (a short video of the bubbling cores will be published in the media section Elixir’s website – www.elixirenergy.net.au). The logging and later gas desorption results will deliver more accurate figures shortly. Permeability testing results will also follow in the short term.
Elixir’s Managing Director, Mr Neil Young, said: “We are very excited with the results to date from the Nomgon-1 well, which has met our key strategic objective of intersecting very thick and visually good quality coals within the CSG depth window. Our local Director Mr B Byambasaikhan recently joined me for a visit to Nomgon-1, where we were again pleased to see operations being conducted safely and professionally.”
Elixir Energy Ltd is a gas exploration company focused on the 100% owned Nomgon IX coal-bed methane (CBM) production sharing contract (PSC) located in the South of Mongolia, proximate to the Chinese border. The 30,000 km2 PSC was executed in September 2018 and has a 10+ year exploration period.
(Source and image: Elixir Energy)