EXR drills first exploration well for 2023 - Mongolia Update
Our energy Investment Elixir Energy (ASX: EXR) just put out an operational update from its Mongolian Coal Bed Methane (CBM) gas project.
Here are our key takeaways from the announcement:
- EXR drilled the first exploration well of its 2023 drill program.
- Pilot production testing program ongoing:
So far water flow-rates at the project are at ~130 barrels per day, Gas flow rates on the other hand are variable.
One of EXR’s previous updates showed that early results from the testing were performing stronger than some CBM projects in China.
Below is an image showing where EXR’s production rates were compared to flow tests run on CBM projects in China:
At the moment EXR’s focus seems to be on working out the optimal technical specifications for its testing equipment to try and get the best gas flow rate possible.
Next, EXR will be looking to drill an additional well that will be production tested.
What’s next for EXR?
Mongolian Coal Bed Methane (CBM) gas project:
- Extended production testing 🔄
- 2023 exploration program 🔄
Mongolia green hydrogen project:
- Financing for a pilot plant 🔄
- Offtake agreement for the pilot plant 🔄
- 50/50 Joint Development Agreement (JDA) 🔄
QLD gas project:
- Contractor selection 🔄
- Financing 🔄
