Flow rate milestone hit - so far so good

This morning our energy Investment Elixir Energy (ASX: EXR) reached a milestone flow rate at its coalbed methane gas project in Mongolia.

EXR started its long-term production test on the 16th of November 2022 and the two well (Nomgon-8 & 9) program has now been operational for ~86 days.

Today EXR reached a milestone moment with the two wells flowing a combined 100,000 standard cubic feet per day (scfpd) of gas and 180 barrels per day of water.

Importantly, EXR confirmed that production rates were slowly improving which is generally the expectation when production testing coalbed methane gas projects.

For some context on the flow rates, EXR put out some comparisons with other Coalbed Methane Gas projects in China that are producing gas.

The graph shows how normally, Coalbed methane gas projects take some time to ramp up and then production rates peak after ~12 months.

EXR’s project, on the other hand, has already started ramping up significantly and if results are likely to improve in later years we could expect the flow rates to increase from here.

EXR now has over 80 days of production data which will help the company put together production curve estimates that it can then feed into feasibility studies for its project.

EXR has now shut-in the two wells to perform routine pressure build-up studies.

While the production test is ongoing EXR is also preparing to start its 2023 drilling program where it plans to drill a minimum of 9 wells (4 appraisal wells and 5 exploration wells).

Drilling is expected to commence in Q2-2023.

The pilot production testing and completion of exploration programs were the key objectives that we wanted to see EXR achieve this year at its Mongolian gas project: