Gas flared from pilot production well
Our energy Investment Elixir Energy (ASX:EXR) today announced that pumping has commenced at the Nomgon pilot project with gas breakthroughs that is already being flared — a first for Mongolia.
We consider this a big achievement as getting the maiden pilot production program up and running this year was a key objective that we wanted to see EXR achieve, as we explained in our 2022 EXR Investment Memo.
Having completed the Nomgon-8 and Nomgon-9 pilot wells last month, the pumping related down-hole and surface facilities were installed before commencing the pumping of fluid from these two wells earlier this week.
The early breakthrough of gas supports EXR’s interpretation that the coal is close to 100% gas saturated.
EXR’s aim for the project in the months to come is to establish a commercial flow rate, and when the gas rates stabilises over the coming days, the measurement of the rate can begin.
Meanwhile, appraisal drilling with the Big Slope-3 and Big Slope-4 wells is ongoing. To date, the wells have intersected 21.4 and 38 metres of gassy coal, respectively, and are expected to reach their target depths within the next week or so.
Gas contents measured from these wells have followed up successfully on the high figures measured in Big Slope-2 with Big Slope-3, the highest so far within the Nomgon IX PSC (a peak of 9.2m3/t raw gas basis).
EXR today also released a new presentation for its 2022 AGM and its AGM Chairman's address.
