Elixir Energy Ltd (ASX:EXR) continues to advance its coal bed methane exploration and appraisal program in North Asia, where it is building on the first gas discovery in Mongolia.

Currently, the ASX-lister is investing in the development of its Nomgon IX Coalbed Methane (CBS) production sharing contract, just north of the Mongolian/Chinese border.

As part of its exploration and appraisal program, Elixir’s first well of its 2022 drilling campaign discovered a new coal sub-basin.

Since then, an appraisal well on the property has been sunk and two other drilling contractors have been engaged to accelerate the company’s work program.

Elixir advances the first discovery of coal bed methane in Mongolia. Ultimately, he thinks the project could work all year round.

Growing activities

Speaking on the progress to date, Elixir Chief Executive Neil Young said: “Understandably, we are delighted that our 2022 program has kicked off with a successful exploration well.

“As the Mongolian winter turns into spring, we are rapidly expanding our business in the Nomgon PSC and are pleased to add two new drilling contractors to our overall team.”

Elixir’s exploration plans for 2022 include the acquisition of 322 kilometers of 2D seismic data. This program is ongoing, with 47 kilometers acquired to date.

The story so far

Elixir’s first well in its 2022 drilling campaign was the Tim-1S exploration well, targeting the identification of a new sub-basin just south of the Tavan Tolgoi mining complex.

This well was drilled to a total depth of 804 meters and recorded 16 meters of coal and 30 meters of silty coal, giving a total coal production of 46 meters.

The drilling contractor that drilled Tim-1S, Top Diamond Drilling LLC, has now moved its rig to the Tim-2 location – the recently drilled appraisal well – approximately 200 meters downstream. from the Tim-1 coal intersection.

Notably, Tim-1S and Tim-2 were drilled as carry-over wells from the PSC’s 2021 budget.

Elixir now has all formal annual approvals to begin the 2022 program and has recently re-signed Top Diamond Drilling – along with a new drilling contractor, Ellecohr LLC – to drill the company’s wells under the program. exploration and evaluation for this year.

In addition, Elixir has contracted with the local subsidiary of international drilling company Major Drilling to drill and complete the long-term pilot production wells, which are due to be drilled by mid-year.