Gas production testing hits another milestone
This morning our energy Investment Elixir Energy (ASX: EXR) hit another milestone flow rate at its coalbed methane gas project in Mongolia.
EXR is now producing ~200,000 standard cubic feet per day (scfpd) of gas and ~150 barrels of water per day.
EXR has now been production testing its project since the 16th of November 2022 meaning it has now been ~105 days.
For some context on the flow rates, in its last update, EXR put out some comparisons on other Coalbed Methane Gas projects in China that are producing gas.
The key takeaway for us was the ramp up time for other coalbed methane gas projects that typically reach peak production rates after ~12 months. This could mean EXR’s production rates could continue improving as the production program continues.
The chart below shows how EXR’s production rate is already exceeding that of other projects in the region.
While the company’s production test is ongoing, EXR expects to start its 2023 exploration drilling program next month.
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:
