Perth-based Elixir Petroleum Ltd. has a risked best estimate recoverable coal seam gas prospective resource of 7.6 tcf in its wholly owned Nomgom IX prospect in southern Mongolia according to global independent petroleum reserves and resources auditor ERC Equipoise Pte. Ltd.
The Nomgom IX production-sharing contract is in the southern Gobi Desert close to market in northern China.
The report adds that the best estimate unrisked recoverable gas prospective resource figure is 40 tcf.
The independent report was prepared for Golden Horde Ltd., a company that Elixir intends to acquire pending shareholder approval at a meeting next week. Golden Horde is a private company in South Australia established in 2011 with the sole purpose of building a coal seam gas project in Mongolia.
Elixir said the resource assessments were estimated using probabilistic methods from information including gravity and magnetic data, detailed field mapping and interpretation of relevant core-hole logs within the PSC.
Other input parameters include net coal thickness, coal density, gas content, ash, and moisture content.
Elixir says the PSC encompasses about 7 million acres containing known thermal coal deposits and has a 10-year exploration period.
Following completion of an environmental impact study, the exploration program will begin with a 2D seismic acquisition program scheduled for May 2019 to identify locations for an initial drilling program later in 2019.