Promising early flow rates at coal seam gas project
Our energy Investment Elixir Energy (ASX: EXR) today announced promising early flow rates from its pilot production test at its coalbed methane project in Mongolia.
Testing at EXR’s Nomgon pilot production plant is ongoing with production from the pilot to continue into the New Year.
EXR say that its plan to determine if a commercial flow rate can be established is on track.
The well is seeing growing water and gas rates. We’re pleased to see that the produced water rates (which were low in the first place due to the high gas saturated nature of the coals) are decreasing while the casing (gas) pressure is steadily increasing.
EXR expects gas flow-rates to have stabilised early in 2023.
We also like to see that the gas samples from the flow tests have measured 99% methane content and the salt content of produced water is now fresher than previously measured. Both of these factors support materially lower costs and environmental impacts in the development stage.
2022 exploration and appraisal drilling program complete
In the announcement today EXR also reported that its 2022 exploration and appraisal drilling program is now complete.
A total of 17 wells were drilled in the year (excluding the Nomgon-8 and 9 pilot wells).
In total, Elixir drilled 11,576 metres in 2022 at its Nomgon IX project, having recently mobilised a new drilling company that applied new drilling systems that allow for wells to be drilled more quickly and with greater confidence.
Analysis and interpretation of this program is underway and will supplement the emerging results of the pilot program as the key inputs for the company’s Mongolian CBM plans in 2023.
The pilot production testing and completion of the 2022 exploration program were the key objectives that we wanted to see EXR achieve this year at its Mongolian gas project:
