Elixir Energy Ltd (ASX:EXR) has successfully drilled and completed a second well in the coal bed methane (CBM) pilot project underway at its 100%-owned Nomgon IX CBM Production Sharing Contract (PSC) in southern Mongolia
The second well for the company’s extended pilot production program (Nomgon-8) was safely drilled to a total depth of 562 metres in 10 days, which is a new record for the company, within time and on budget.
About 51 metres of coal were logged over the primary target ‘100 series coal’ and a perforated liner has been installed over the section.
Wireline logging at Nomgon-8.
Winter is here
The drilling rig will now stay on location to complete the wells in preparation for the pilot production program, which has been delayed due to the early arrival of winter storms in the Gobi this year.
Still, Elixir anticipates initiating the pilot production test within the next month or so.
Elsewhere in the basin, drilling at Big Slope 2 has intersected about 38 metres of coal and silty coal.
Raw gas desorption readings have been recorded in excess of 7 cubic metres per tonne and are the highest recorded in the Nomgon IX PSC so far.
Project on plan
Elixir managing director Neil Young said: “Our CBM pilot production project continues to go to plan with the completion of the drilling of the two pilot wells - on time and on budget. Our aim remains to pump water - then gas - from the wells in the short term.
“In parallel, the recent exploration/appraisal results from the Big Slope field are promising and we will continue to expand our knowledge of this area.”
Elixir plans to run an injection fall off test (IFOT) in the Big Slope sub-basin before the end of the year.
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