Elixir (ASX:EXR) bring Nomgon-10 to production
September 27, 2023Elixir Energy‘s Nomgon-10 gas pilot well has begun flowing amid excitement over discovery at its Nomgon IX Coal Bed Methane Production Sharing Contract in Mongolia’s South Gobi Basin.
Nomgon-10 went from spud to producing water in 19 days. Plans are being made to connect to the main Nomgon Pilot Production plant in anticipation of the arrival of gas.
Successful drill stem testing has confirmed a permeable coal saturated with gas in the Yangir West-2 well, leading to another Coal Bed Methane discovery in the Yangir region project.
Elixir Managing Director Neil Young said the drilling had gone to plan, and the company looked forward to growing production towards gas flow.
“Favourable results will put the Nomgon Pilot Project back on the intended pathway of determining commerciality,” Mr Young said.
“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. We expect in 2024 to focus on moving these discovered resources into reserves.”
Forward plan
With Nomgon-10 now in production and discoveries claimed at Big Slope and Yangir, Elixir is winding down its drill program with all the year’s major drilling objectives ticked off.
Drilling at Yangir is still above the coal targets. Elixir intends to raise Nomgon-10’s production slowly to avoid formation damage and shocks to the coal reservoir as the company plots next year’s drilling directed at de-risking its collection of discoveries.
Nomgon stands as the company’s most advanced asset, but it is moving on multiple fronts into a hot gas market and is on pace to drill its Daydream-2 Well at its Grandis Gas Project near Queensland’s Wallumbilla gas hub.
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