Elixir Energy is solely focused on it’s100% owned Nomgon IX Coal Bed Methane (CBM*) Production Sharing Contract (PSC) project in the South Gobi region of Mongolia.
The Nomgon project is located on the Mongolian Chinese border, around 400 km North of China’s main gas transmission grid.
The Nomgon Project licence area covers ~30,000 km2 (~7 million acres). This very large area has been independently certified to contain a giant CBM risked recoverable prospective resource of 7.6 Tcf (best case).
The project has access to excellent infrastructure including power lines, roads (sealed road from Ulaanbaatar through the PSC & into China) and rail, accessing the thousands of trucks shipping coal into china from the two major mines of Tavan Tolgoi and Oyu Tolgoi (which are located within the boundary of Elixir’s PSC.
Service sector support and local workforce located in nearby towns.
Electricity grid connections – to Mongolia – and China – of large capacity.
Asian Super Grid project potential.
Planned pipeline from Russia via Mongolia to China – Gazprom’s Power of Siberia 2.
MONGOLIA'S FIRST CSG DISCOVERY
- Net coal intersected of 71 metres.
- Thickest coal seam (series 100 seam) package of ~50m, with net coals of 37m.
- Average raw gas content of main seam measured at >5m3/tonne and on DAF basis at ~9m3/tonnne.
- Tests from Nomgon-1 indicate main seam is fully gas saturated.
- Nomgon-2 IFOT 4 delivered world class permeability of 91.5mD.
- Production testing planned for 2021.
Some observations made during program to date:
- Coals can be much thicker than in Australia – more energy dense per km2 – leading to likely lower cost per GJ produced
- Gas saturated coal seams mean lower cost of water handling in pilot and production stages
- Very low cost of drilling and market focused location more than offset geological complexity
- Permeability has been variable to date – but very highly permeable sections have already been found
Operate all year round
- Strong local management & experienced local contractors in place. Track record of procuring all required permits
- Online supervision from Australia successfully implemented, with resident expats available as required
- No import of equipment required
- Ability to operate 365 days a year – not wet, no real snow, low population density, no rivers
- Numerous independent basins
- Now exploring outside Nomgon sub-basin
- Easy terrain for pipelines could readily link up sub-basins
- Continuous process
- Exploration is very low cost for oil and gas
- Access is easy in global terms – not wet, no real snow, low population density, no rivers
LARGE RESOURCE POTENTIAL