Elixir to start CBM production pilot in Mongolia

Australia’s Elixir Energy will start the pilot production programme at its 100% owned Nomgon IX CBM project in Mongolia in the latter half of next month, the company said on July 29.

Elixir said it has overcome logistical and supply chain hurdles in the first half of 2022 and all the required equipment for drilling, completion and testing is now in Mongolia.

The programme begins with the drilling of two pilot production wells. Elixir has engaged Major Drilling Group to drill the Nomgon 8 and 9 wells. The wells will be drilled to about 600 m in 8.5-inch hole, with well design and casing sizes similar to that of most Australian CBM production wells, rather than the smaller hole size exploration wells the company has been drilling to date in Mongolia.

Meanwhile, Elixir’s exploration programme in Mongolia continues, currently utilising two local drilling sub-contractors and deploying three rigs. The Venetian-1 exploration well has discovered another coal-bearing sub-basin. It was drilled to 882 m and intersected 6.5 m of coal and carbonaceous siltstone in the CBM depth window. The Orio-1 exploration well has recently spudded, it said.

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