Elixir Energy Ltd (ASX:EXR) has spudded the Bluebill-1S exploration well at its 100%-owned Nomgon IX Coal Bed Methane (CBM) Production Sharing Contract (PSC) in the South Gobi Basin, Mongolia.
The well is just 18 kilometres east of the Nomgon Pilot Production Plant and is the first well to be drilled in the company’s 2023 low-cost exploration drilling campaign.
Elixir will start appraisal drilling shortly but in the meantime is continuing its extended pilot test.
“We are pleased to commence 2023’s exploration drilling campaign in what are now excellent weather conditions – which will also benefit the appraisal drilling due to start soon," Elixir’s managing director Neil Young said.
“Later this year we aim to also see the company’s operations add drilling in Australia for the first time. We are very much looking forward to the multiple sources of potentially very positive news flowing from all of these activities.”
The Bluebill-1S exploration well.
Drilling down the details
Elixir reports that water flow rates at Nomgon are steady at 130 barrels per day and that gas flow rates are currently variable as the company experiments with choke size, casing pressure and fluid level to optimise coal depressurisation.
The company has also found a location for an additional pilot well and is pursuing relevant environmental and other approvals.
Elixir will soon start its appraisal drilling campaign planned for Big Slope and Yangir, with Major Drilling and Erdenes Drilling to assist Elixir in this program.
Young noted that the nine CBM well drilling campaign for 2023 remains on track. To ensure this, Elixir directed its drilling contractors to significantly improve their drilling capability.
All rigs now incorporate enclosed mud systems which should assist in increasing penetration rates and stabilising the holes.
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