- Elixir Energy (EXR) was up more than 120 per cent this morning after its Mongolian well intersected 82 metres of net coal
- After reaching a total depth of 491 metres, the well will now undergo logging and permeability testing
- The company says its key objective was to discover thick, gassy coal seams below 300 meters
- Elixir's share price has dropped slightly but is currently still up 111 per cent and is trading shares for 4 cents apiece
Elixir Energy (EXR) was up more than 120 per cent this morning after its Nomgon-1 well intersected 82 metres of net coal.
The company's key objective for its first exploration campaign was to discover thick gassy coal seams below 300 metres. To date, results from Nomgon-1 have met that goal.
Elixir's well has now reached a total depth of 491 metres and logging will begin shortly and be followed by permeability testing.
Well site geologists have measured total net coal of 82 metres, and of which 62 of those metres are deeper than 300 metres.
The thickest coal seam below this 300-metre cut-off point measures 51 metres, however, according to Elixir, the upcoming logging will deliver a more accurate figure.
Well site geologists have also described the observable coal qualities to dominantly be C3-C4 on the 'AS 2519-1993 Guide to technical evaluation of higher rank coal deposit's brightness scale'.
These results, C3 being firm and C4 being stiff, are considerably better than those encountered at the Ugtaal-1 well.
Furthermore, the coals are visibly fractured which is good for the permeability of them.
Abundant gas from the recovered core was noted across the while interval before it was representatively sampled for gas content desorption measurement.
The logging and gas desorption (changing from an absorbed state on the surface to gas or liquid state) results will deliver more accurate figures, while permeability testing results will also follow in the near term.
"We are very excited with the results to date from the Nomgon-1 well, which has met our key strategic objective of intersecting very thick and visually good quality coals within the CSG depth window," Managing Director Neil Young said.
"Our local Director Mr B Byambasaikhan recently joined me for a visit to Nomgon-1, where we were again pleased to see operations being conducted safely and professionally," he added.
Elixir's share price has dropped slightly but is currently still up 108 per cent and is trading shares for 4 cents apiece at 11:42 am AEDT.