Elixir starts 2023 CBM drilling campaign in Mongolia

Sydney-listed Elixir Energy on June 13 announced that Bluebill-1S exploration well in the Nomgon IX coalbed methane (CBM) project located in the South Gobi basin recently commenced drilling. Positioned 18 km east of the Nomgon pilot production plant, the Bluebill-1S well marks the initiation of Elixir's exploration drilling campaign for 2023.

Concurrently, operations at the Nomgon extended pilot test continue, with water flow rates remaining stable at 130 barrels/day. Gas flow rates are being adjusted as the company experiments with choke size, casing pressure, and fluid level to optimise coal depressurisation.

Additionally, Elixir has identified a suitable location for an additional pilot well and is pursuing the necessary environmental and regulatory approvals for its development. The upcoming appraisal drilling campaign at Big Slope and Yangir is also scheduled to begin soon, the company said, with the assistance of drilling contractors Major Drilling and Erdenes Drilling. The company said its nine CBM well drilling campaign for 2023 accordingly remains on track.

“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. 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," Elixir’s managing director, Neil Young, said.

Elixir last year purchased a 100% interest in petroleum exploration permit ATP 2044 in Queensland via the acquisition of special purpose vehicle EnergyCapture. ATP 2044 is prospective for gas and condensate trapped in conventional and unconventional sandstones and fractured coals.

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.