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- Elixir Energy (EXR) has substantially upgraded the prospective resources at its 100 per cent-owned Nomgon IX project in Mongolia
- The independent audit was conducted by ERC Equipoise and marks the first resource upgrade since Elixir began exploration in 2019
- The risked 2U prospective resources — essentially the “best estimate” of what’s in the ground — have increased 92 per cent to 14.6 trillion cubic feet
- Elixir’s appraisal drilling program across Nomgon is ongoing as the company seeks to gather more data
- An initial contingent resource estimate for the project will be prepared and issued once the all the data has been compiled, modelled and analysed
- Elixir Energy is up 25 per cent to 12.5 cents
Elixir Energy (EXR) has upgraded the prospective resources at its 100 per cent-owned Nomgon IX project in Mongolia.
The independent audit was conducted by ERC Equipoise and marks the first resource upgrade since Elixir began exploration in 2019.
Bang for buck
The company is pleased to have posted such a solid jump in prospective resources after relatively little outlay and in such quick time.
Unrisked and risked prospective resources have increased significantly from the 2018 estimates.
Most notably, the risked 2U prospective resources — essentially the “best estimate” of what’s in the ground — have increased 92 per cent to 14.6 trillion cubic feet (Tcf).
The geological chance of success — a risk assessment based on how exploitable the potential resources are likely to be — has also increased 58 per cent over the 2018 estimates, and now stands at 30 per cent.
While these figures are still just best guesses based on preliminary data, the substantial increases in prospective resources and progressive de-risking of the project bode well for potential development.
Elixir Managing Director Neil Young says the company has been getting bang for buck so far at Nomgon IX.
“We are naturally delighted to see that our work over the last two years has delivered such a substantial increase in our prospective resources – with the best case nearly doubling,” Neil said.
“To achieve this level of de-risking of the asset with what in oil and gas terms has been a very modest outlay over a short period of time makes a real statement about how readily the enormous potential of the PSC might be realised.
Elixir Managing Director Neil Young
“Our ongoing exploration and appraisal program is basically all about continuing to reduce risks in a very economic and demonstrable fashion,” he added.
Outlook
Elixir’s appraisal drilling program across Nomgon is ongoing as the company seeks to gather more data.
An initial contingent resource estimate for the project will be prepared and issued once the all the data has been compiled, modelled and analysed.
The company is planning to continue exploration next year as it seeks to further de-risk its flagship project amid volatile pandemic market conditions.
Elixir Energy is up 25 per cent to 12.5 cents at 10:50 am AEDT.
