Elixir Energy Ltd (ASX:EXR, OTC:ELXPF) is on track to achieve gas desorption breakthrough by the end of this year at the 100%-owned Nomgon IX Coal Bed Methane (CBM) Production Sharing Contract (PSC) in the South Gobi Basin of Mongolia as operations continue safely and without incident.
Pilot production operations are currently focused on water and the operators are refraining from flaring the small volumes of gas from the annulus to keep the system stable.
Water production stable
The Mongolian Pilot Plant has produced more than 73,000 barrels of water since its inception and the current daily water production is stable at ~280 barrels of water.
This is the highest level the field has seen from the Nomgon-9 and Nomgon-10 producing wells.
The CBM field is now seeing steady reservoir pressure decrease at around 5 psi per month and presuming this trend continues, the field should begin to see gas desorption breakthrough before the end of 2024.
“Clear understanding”
Elixir’s managing director Neil Young said: “With water production now at a stable maximum rate, we have developed a clear understanding of the reservoir pressure decline and look forward to producing desorbed gas by the end of 2024.
“Credit must go to the Production and Operations Team in Mongolia for getting our field to this level and delivering this milestone safely and without environmental incident.”
Two additional pilot wells that were provisionally planned for 2024 are not considered necessary to assist and accelerate gas desorption breakthrough in the field.