The Nomgon-10 pilot well of Elixir Energy Ltd (ASX:EXR) is now online at its Nomgon IX coal bed methane (CBM) project in the South Gobi Basin of Mongolia while the company has also declared a CBM discovery in the Yangir region and confirmed that its 2023 drilling program is nearly complete.
Pilot production well
The Nomgon-10 pilot production well has been successfully drilled, completed and brought into production with water flowing initially and gas due to follow.
Work is proceeding on time and on budget, taking just 19 days from spud to first water production.
Elixir is bringing the well into production slowly to minimise the risks of formation damage and shocks to the coal reservoir.
Nomgon-10 is an additional pilot well that will be connected to the Nomgon Pilot Production plant. The Nomgon-8 and 9 pilot wells remain suspended whilst the company monitors pressure communication between the wells.
Elixir managing director Neil Young said, “The drilling of the Nomgon-10 pilot well has gone to plan and we look forward to growing production of water – and then gas – from this well.
"Favourable results will put the Nomgon Pilot Project back on the intended pathway of determining commercialism."
Yangir CBM discovery
In the Yangir region, a successful drill stem test (DST) was performed on the Yangir West-2 well, with the results constituting a CBM gas discovery with the company having proved the presence of gas-saturated coal with adequate permeability.
Yangir core holes and chip holes have intersected coal thicknesses of up to 60 metres of coal, even though the full stratigraphic section is yet to be intersected. Elixir has measured gas contents of up to 10 cubic metres per tonne (on a raw basis) in the Yangir sub-basin.
Excelsior Energy — a technology and service provider to the mining and oil & gas industry — conducted the DST by undertaking considerable pre-planning with Elixir and around-the-clock well site and remote supervision to ensure a successful outcome.
At Big Slope, the Big Slope West-1 well has been successfully drilled. The well reached a total depth of 620 metres and intersected more than 27 metres of coal. The company’s four-rig program is now winding down, with one rig still drilling.
The remaining Erdene Drilling rig is drilling Yangir Far West-1 and is currently at a depth of 425 metres, which is still above the coal targets.
“Our other appraisal and exploration drilling in 2023 – completed safely and within budget — has added new discoveries in the key South West region of our PSC," Young said. "We expect in 2024 to focus on moving these discovered resources into reserves.”