Oz Elixir Has Significant Resources at Mongolia CBM PSC
Australian Elixir Petroleum has a risked best estimate recoverable coalbed methane (CBM) prospective resource of 7.6 trillion ft3 within its 100% owned Nomgon IX CBM asset located in the South Gobi Desert in Mongolia, it said November 19 citing a report by ERC Equipoise.
The Nomgon IX CBM production sharing contract (PSC) is close to the northern Chinese gas market. The ERCE report further stated that best estimate unrisked recoverable gas prospective resource stood at 40 trillion ft3.
The ERCE report has been prepared on behalf of Golden Horde which Elixir intends to acquire following receipt of shareholder approval later this month, Elixir said. The Nomgon IX CBM PSC was allotted to Golden Horde earlier this year.
The Nomgon IX is the first unconventional PSC issued pursuant to Mongolia’s updated Petroleum Law, passed by parliament in 2014. The PSC covers an area of over 7mn acres adjacent to the Chinese border and is well-placed for future gas sales into the extensive northern China gas transmission and distribution network, Elixir said. In addition to supplying gas to China, the Australian company hopes that Mongolian government’s desire to replace coal with cleaner-burning gas in power and heat generation will create a local market too.