New coal bearing sub-basin discovered, more drilling to come

Investment Memo: EXR 2022

Key Objective #2: Exploration drilling program

Our 2019 Energy Pick of the Year Elixir Energy (ASX:EXR) just put out an operational update with respect to the exploration works happening across its coal bed methane (CBM) gas project in Mongolia.

In the update EXR confirmed the discovery of an entirely NEW coal bearing sub-basin with an intercept returning ~21m of coals.

Importantly the intercept now opens up an entirely new sub-basin inside EXR’s project area which could be prospective for coal bed methane (CBM) gas and more significantly is a sign of how much exploration potential EXR’s project still has.

EXR also confirmed that it plans to follow up this discovery with an appraisal well at a location ~four kilometres away.