Elixir Energy intersects thick ‘highly encouraging’ coal at Nomgon-1

In its search for thick gassy coal seams, Elixir Energy (ASX: EXR) has struck 82m of net coal below 300m at the Nomgon-1 core hole well, which has been described as “visually good quality” and “very thick”.

Within that, the widest coal seam below the 300m cut-off was 51m, which extended from 373m to 424m.

Total depth of the well was called at 491m, with Elixir planning to beginning logging followed by permeability testing.

According to Elixir, the vertical well indicated synclinal coal seams, with visible coal qualities described as “highly encouraging”.

Site geologists have noted the visible coal as higher ranking and better than that encountered at the Ugtaal-1 well.

The coal was also visibly fractured and cleated, which Elixir claims is positive for permeability.

Additionally, abundant gas was observed bubbling from the recovered core prior to it being sampled and measured for gas content and desorption.

Elixir managing director Neil Young said the company was “very excited” with the results to-date from Nomgon-1, which has met the company’s objectives of intersecting “very thick and visually good quality coals within the coal seam gas depth window”.

Logging and gas desorption results are expected to give Elixir a more accurate idea of the mineralisation, with permeability testing results anticipated in the “short term”.

Mongolian coal seam gas exploration

Nomgon-1 was spudded in January as part of Elixir’s exploration campaign for coal seam gas in Mongolia.

The well has been drilled in a separate sub-basin nearly 40km from the Ugtaal-1 well, which reached a total depth of 752m in December.

For 2020, Elixir is targeting a range of Permian sub-basin models within the Nomgon IX PSC as part of its strategy to become a low-cost gas explorer and producer.

Elixir has received a number of approaches from several parties regarding a potential joint venture in the Nomgon IX PSC.