Elixir Energy Limited provides an update on the results of the Nomgon-1 core-hole well in Nomgon IX CBM PSC on 26 February 2020. Nomgon-1 well determined to be a coal seam gas (CSG) discovery,   The well-site desorption laboratory at Nomgon-1 has measured an average total gas content in the thickest 49m gross (37m net) coal seam package of >5 m3/ton. Three down-hole permeability tests were successfully conducted on the well using injectivity fall-off test (IFOT) equipment. The results therefrom are subject to further analysis but at this point the ranges measured are sufficiently robust to meet the requirements of a coal seam gas discovery.  Accordingly, the result of the well meets the technical definition of a gas discovery under the Petroleum Resource Management System (PRMS).  The Nomgon-1 well has now been plugged and abandoned in accordance with Mongoliaâs petroleum regulations. Further laboratory work will be undertaken to measure features such as saturation and ash content. The results of this will feed into a planning process which is now underway to design a testing and delineation program for this sub-basin.  Elixir Energy Ltd (previous Elixir Petroleum Ltd) provided updates regarding its 2019 drilling program at the Nomgon 1 well in Nomgon IX CBM PSC on 5 February 2020. The Nomgon 1 well has reached to a TD of 491 m and wireline logging is underway. The well hit the goal and targets that the company set for this well to discovery thick gassy coal seams below 300 m. Nomgon 1 intersected total net coal of 82 m, 63 m of that is deeper than 300 m including 51 m thickest coal seam measured from section 373 â 424 m depth. Abundant gas bubbling from the recovered core was observed across the whole interval. Coal bed fractures and cleating, as critical permeability factors are visible. The vertical well also indicated syncline coal bed seams.   Nomgon 1, a new-field wildcat well, located in Nomgon IX CBM PSC in the South Gobi Basin in Mongolia, was spudded on 16 January 2020, targeting the Permian age sediment at a depth suitable for CBM extraction. The well was completed reaching a TD at 491 m in early February 2020. Following, the company will continue core test for gas content and composition, commencing logging and permeability testing. The logging and later gas desorption results will deliver more accurate figures shortly. Permeability testing results will also follow in the short term.  Elixir Energy has a two fully tested core-holes program planned in 2019 in Nomgon IX CBM PSC, with an option for a third well. The aim of the drilling program is to determine the presence and thickness of coal, gas content and composition which will be used to make a contingent resource assessment in the new year 2020.   The first well, Ugtaal â 1, was spudded on 11 November 2019 and hit a TD of 752 m on 8 December 2019. It was deeper than pre-drill prognosed TD of 600 m. Net coal thickness was confirmed by logging at about 43 m. Permeability test was successfully taken, but result was less than expectation, coal quality was also poor than expectation. Ugtaal -1 lies approximately 37 km to the North-East of the Nomgon-1 well and is situated in a different Permian sub-basin to the Nomgon -1 in the large Nomgon IX PSC block.  Nomgon-1 is the second well of the drilling program.  Elixir Energy Ltd holds 100% interests in Nomgon IX CBM PSC.  Background Information  Elixir Petroleum Limited, based in Australia, is an international oil and gas exploration company with operations in Mongolia, the United States and France. The company obtained Nomgon IX CBM PSC following acquisition of Golden Horde Limited (GOH), a privately-owned Australian company, in December 2018.   The Nomgon IX CBM PSC is the first unconventional PSC issued pursuant to the countryâs updated Petroleum Law, which was passed by Parliament in 2014.Nomgon IX, which covers an area of over 7 million acres, lies adjacent to the Chinese border and is ideally placed for future gas sales into the extensive Northern China gas transmission and distribution network. In addition to Chinese gas demand, Mongolia currently has no gas production and there is a strong political desire to replace high pollution coal power and heat generation with low emission clean-burning gas fired generation. With the potential to find and develop multiple Tcf of gas from CBM, both the Mongolian and Chinese markets could be supplied with Mongolian CBM.  The PSC is located in what is considered to be one of the most prospective basins in Mongolia for CBM. The PSC surrounds one of the worldâs largest producing thermal coal deposits, Tavan Tolgoi, which has an estimated resource of over 6 billion tons and produced over 14 million tons of coal in 2016. Data from wells within the Tavan Tolgoi mine indicate gas contents of up to 15 cm/t (480 cf/t) at depths of 467 m below surface which is considered high by world CBM standards and is a good indication that surrounding areas are likely to contain similar gas content levels.  Based on current assessment on The Nomgon IX prospective CBM resource, the block has Best estimate unrisked recoverable CBM gas prospective resource of 40.1 Tcf, risked best estimate recoverable CBM gas prospective resource of 7.6 Tcf.  Elixir has high graded a number of areas which it considers the most prospective for CBM within the PSC. The planned 2019 exploration program will be initially focused on these areas where, based on existing gravity data and field mapping, it is interpreted that coals may be present and be at the right depth for CBM production.
Nomgon 1X expl (South Mongolian Petroleum LLC 100%), CBM research well in Nomgon IX CBM PSC, coal seam targets met, 82m net, thickest seam 51m,  determined a CSG discovery, avg total gas content in the thickest 49m gross (37m net) seam >5 cum/ton, well now P&A'd. Lab work required to determine saturation + ash content, results of which would determine a planning process to design a testing / delineation programme in the area. TD 491m.