Elixir Energy Ltd., Adelaide, has spudded the first well of a 24-well coal seam gas (CSG) exploration and appraisal program planned for 2022 across its 100%-owned Nomgon IX Coal CBM Production Sharing Contract in the Gobi basin of southern Mongolia.
The first, the Tim-1S exploration well, lies south of the Tavan Tolgoi coal mining area in where the company has mapped a potential coal-bearing depocentre, Elixir said.
The well is targeting Jurassic and Permian-age coals and has a planned total depth of 700 m.
Elixir intends to engage three drilling companies to carry out the 2022 program.
A key focus is a two-well extended pilot production program scheduled to begin mid-year that will involve up to 6 months of fluid pumping activity. Preparations are on track and several long-lead items are on their way to Mongolia, the company said.
A successful pilot program will affirm commercial gas flows and facilitate Elixir’s proposed gas-fired generation project in the Nomgon region.
The 2022 program will be the largest undertaken by Elixir in Mongolia.
