Operations In process at the Nomgon project, Mongolia. Source: Elixir Energy
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  • Elixir Energy (EXR) starts drilling the first of 24-wells planned at its Nomgon project in Mongolia
  • Over the weekend, the Tim-1S well was spudded marking the start of the company’s largest drilling campaign undertaken in the country
  • Drilling will target Jurassic and Permian coals with a planned total depth of around 700 metres
  • In the middle of this year, EXR plans to undertake drilling of a two-well extended pilot production program with a six-month fluid pumping program to follow
  • Shares in the company are up 3.13 per cent to 16.5 cents

Elixir Energy (EXR) has started drilling the first of 24-wells planned at its Nomgon project in the South Gobi region of Mongolia.

Over the weekend, the Tim-1S exploration well was spudded, marking the start of the company’s largest drilling campaign in the country, as part of its exploration and appraisal program across its coal bed methane Production Sharing Contract (PSC).

The first well is situated south of the Tavan Tolgoi Coal Mining area, where Elixir has mapped a potential coal-bearing depo-centre.

Drilling has been designed to target Jurassic and Permian coals, with a planned total depth of around 700 metres.

Elixir has engaged three drilling companies to complete the 24-well program and said mandatory annual regulatory processes are close to completion.

In the middle of this year, the company plans to undertake drilling of a two-well extended pilot production program with a six-month fluid pumping program to follow.

This is a focus for the company’s campaign, and if successful, will affirm commercial gas flows and facilitate a planned gas-fired generation project in the Nomgon area.

Elixir said preparations for this work are on track and various long lead items are en route to Mongolia.

“This year, we are conducting the largest program we have ever undertaken in Mongolia and we look forward to continued success on both the exploration and pilot fronts,” Elixir Managing Director Neil Young said.

“Notwithstanding international events in Eastern Europe, we pleased to see that its business as usual in Mongolia.”

Shares in the company were up 3.13 per cent to 16.5 cents at 10:43 am AEDT.

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