Oz Elixir Moves Forward with Mongolian CBM Project
Australia-listed Elixir Petroleum May 2 said its has issued an invitation to tender to six drilling contractors for a corehole drilling programmme as part of its Nomgon IX coalbed methane project in Mongolia.
The tender is for a minimum two well programme to be undertaken later in 2019 post the acquisition of 2D seismic, it said.
The company said “negotiations with a preferred contractor for the seismic acquisition are well advanced and contract award is expected shortly. Customary government approvals required for the work program are being pursued in parallel.”
The invitation was issued to six drilling contractors who replied to a formal request for expressions of interest. Five are local Mongolian companies and one is an international drilling company with a regional office in Mongolia. The tender is planned to close May 31, Elixir said.
The Nomgon IX CBM production sharing contract (PSC) is close to the northern Chinese gas market. It is the first unconventional PSC issued pursuant to Mongolia’s updated Petroleum Law, passed by parliament in 2014. Last year, the company said it has a risked best estimate recoverable CBM prospective resource of 7.6 trillion ft3 within its 100% owned Nomgon IX CBM asset.