Oz Elixir Spuds Mongolia CBM Well
Sydney-listed Elixir Energy November 18 said it has spudded the Ugtaal-1 core-hole at its 100% owned Nomgon IX coalbed methane (CBM) production sharing contract (PSC) in Mongolia.
The Ugtaal-1 core-hole spudded on November 11 and as of November 17 had reached a depth of 122 metres, the company said. The well has intersected lithologies include conglomerates, carbonaceous mudstones and thin coal stringers.
“With the spudding of the Ugtaal-1 core-hole, we have now commenced our key well for 2019. We anticipate the well reaching the Permian section later this week after which we will start testing coal cores for their gas content,” managing director, Neil Young, said.
Elixir's 2019 programme has been expanded to include two to four stratigraphic chip-holes in addition to the drilling of two firm and fully evaluated core-holes. The company said the option to drill third core-hole remains. Last month the company kicked off its drilling programme with the spudding of BO-CH-1 chip-hole, which has now reached a depth of 408 metres.
The Nomgon production sharing contract is located in the Gobi Desert on the Mongolia-China border. The PSC comes with an independently certified risked ‘best case’ prospective resource of 7.6 trillion ft3 and an un-risked ‘best case’ prospective resource of 40 trillion ft3.