Oz Elixir Inks Mongolia Drilling Contract

Australia-listed Elixir Energy has signed a drilling contract with Mongolian company Erdenedrilling for it's Nomgon coalbed methane project in Mongolia, it said August 1.

The contract enables Elixir to drill two fully tested CBM wells with the option for another well. The company estimates the first well will be spudded in or around late September or early October. These will be the first CBM wells in Mongolia to be tested to international best practice gas industry standards, it said.

Erdenedrilling has sub-contracted Arizona based Coal Gas Technology to supply equipment and technical services in connection with gas content testing while Elixir will directly source permeability testing services from Australia, the company said.

Elixir’s managing director Neil Young, said “Our upcoming core-hole programme is on track to supply us with the key data we need to start to convert part of the massive prospective resources independently confirmed in our PSC into contingent resources. Quite simply, we aim to book Mongolia’s first gas discovery within less than six months.”

The Nomgon field is located close to the Chinese border and is 100% owned by Elixir.