Elixir Energy has signed a binding drilling services contract with Mongolian company Erdenedrilling for its Nomgon project.
The contract enables Elixir to drill two fully tested coal-bed methane (CBM) core-holes with the option for another well.
Elixir 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.
Erdene has sub-contracted Arizona based coal gas technology (CGT) to supply equipment and technical services in connection with gas content testing.
CGT has more than 30 years of experience in providing such services to the CBM industry- across North America, Australia, China and other countries.
Elixir will directly source permeability testing services from Australia.
“Our upcoming core-hole program 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 production sharing contract (PSC) into contingent resources,” Elixir managing director Neil Young said.
“Quite simply, we aim to book Mongolia’s first gas discovery within less than six months.”
Elixir Energy is a gas exploration company focused on its 100 per cent owned Nomgon IX coal-bed methane PSC located in the south of Mongolia, close to the Chinese border.