- Oil and gas company Elixir Energy (EXR) has provided an update on its Nomgon project in Mongolia, which is experiencing delays due to COVID-19
- The virus has begun spreading throughout the nation in recent weeks, causing Mongolia to go into lockdown and impose travel restrictions
- As a result, Elixir has decided to wrap up its operations in the region for the rest of 2020 and head back to Yangir 1S strat-hole well in February
- It also advised it had finally received results back from a Chinese lab, with adsorption results from Nomgon-2 indicating fully gas saturated coals
- Shares in EXR have ended the day down 16.7 per cent as investors react to the news of the delay, with shares trading at 10 cents each
Elixir Energy (EXR) has provided an update on its Nomgon gas project in Mongolia, which is experiencing delays due to COVID-19.
The oil and gas explorer advises that the coronavirus has begun spreading rapidly throughout the nation, causing a lockdown to be intiated.
New restrictions about internal travel have also been implemented, prompting Elixir to decide to wrap up its operations in the region for the rest of 2020.
The company has advised it is planning to head back to the Yangir 1S strat-hole well in Nomgon in February, where further drilling is planned.
Elixir did manage to obtain some gas samples from the bubbling cores extracted in the Yangir well before it left and is planning to test the gas composition shortly.
It also purchased 30,000 masks and 600 bottles of hand sanitizer to donate to locals in Mongolia to help with the spread of the virus.
It's not all bad news for Elixir though, the company's used today's update to reveal it had finally received results back from a Chinese lab.
The samples from EXR were sent off several months ago but COVID-19 delayed them from arriving, with some result also still outstanding.
The results which have been returned indicate the lower 100 series coals at Nomgon-2 are fully gas saturated, consistent with those from Nomgon-1.
Elixir said this indication should "greatly reduce the cost and other issues associated with water handling" in future testing and production phases.
Shares in EXR have ended Thursday's session down 16.7 per cent as investors react to the news of the delay, with shares trading at 10 cents each.
