Elixir completes Nomgon-10 CBM well in Mongolia

Australia-listed Elixir Energy on September 27 said that the Nomgon-10 pilot production well in Mongolia has now been successfully drilled, completed and brought into production.

The well is part of the work currently underway in its 100% owned Nomgon IX coalbed methane (CBM) production sharing contract (PSC) in the South Gobi basin. .

The well is being brought into production slowly to minimise the risks of formation damage and shocks to the coal reservoir, Elixir said. 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.

Meanwhile in the Yangir region, Elixir has performed a successful drill stem test (DST) on the Yangir West-2 well. The results of this well constitute a CBM gas discovery, the company said. At Big Slope, the Big Slope West-1 well has been successfully drilled.

With Nomgon-10 on production, and CBM discoveries declared at both Big Slope and Yangir, Elixir said it has now met all its major drilling objectives for 2023. The drilling programme for 2023 will now be finalised once the Nomgon Far West-1 well is completed.

The company said it has started planning for the 2024 programme and will have a primary focus on de-risking the discoveries made to date.

Elixir is also planning a green hydrogen pilot project in Mongolia. The company in January last year signed a memorandum of understanding with Mongolia Green Finance Corp to support project finance for the first phase of its Gobi H2 project.