Elixir Energy finds gassy coals in new Mongolian subbasin

Elixir Energy Ltd., Adelaide, as part of its coal seam gas exploration program in southern Mongolia, has discovered gassy coals in a new subbasin within its Nomgon IX production sharing contract area.

This year, the company has drilled seven wells that intersected significant coal seams over a total west to east distance of 43 km.

Most recently, the Yangir 1S stratigraphic hole, in the Yangir subbasin 24 km west northwest of the original Nomgon-1 discovery well in the Nomgon subbasin, intersected 27 m of gassy coals. Now at 347 m, drilling continues.

Elixir reported active gas bubbling from the Yangir 1S coals recovered to surface as well as in the mud pit—an unusual occurrence and considered highly promising in coals encountered at a relatively shallow depth of 260 m.

The company plans a follow-up appraisal program in 2021 expected to begin with a fully desorbed and tested core hole.

In addition, the Hutul 1S stratigraphic hole, some 19 km east of Nomgon-1, was recently drilled to evaluate the eastern most sector of the Nomgon subbasin. It reached 560 m TD and intersected 6 m of coal. Further work is needed, but Elixir says the result is encouraging.

The final stratigraphic hole in the 2020 program is likely to be delayed because of new COVID-19 prevention measures in the country following instances of community transmission for the first time.

The Nomgon PSC is just north of the Mongolian border with China.