Update on EXR’s Mongolian gas project

Our energy Investment Elixir Energy (ASX: EXR) just put out an update from its Mongolian Coal Bed Methane (CBM) gas project.

In today’s announcement EXR confirmed that one exploration well (Bluebill 1) and one appraisal well (Big Slope-7) had recently been drilled.

Both wells hit “gaseous coals” which is an early positive sign that EXR is drilling in the right areas.

Update on production testing:

EXR also updated the market on its pilot production plant where the company continues to flow test its existing wells.

At the moment EXR’s focus seems to be on working out the optimal technical specifications for its testing equipment to try and get the best gas flow rate possible.

At the same time EXR is permitting an additional well that it plans to production test.

What’s next for EXR?

Mongolian Coal Bed Methane (CBM) gas project:

• Extended production testing 🔄
• 2023 exploration program 🔄

Mongolia green hydrogen project:

• Financing for a pilot plant 🔄
• Offtake agreement for the pilot plant 🔄
• 50/50 Joint Development Agreement (JDA) 🔄

QLD gas project:

• Contractor selection 🔄
• Financing 🔄