Nomgon IX CBM PSC   


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Elixir Energy’s most mature current asset is its 100% owned Nomgon IX Coal Bed Methane (CBM*) Production Sharing Contract (PSC) project in the South Gobi region of Mongolia.

The Nomgon IX CBM PSC (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 14.6 Tcf (best case).




The Nomgon 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.




  • 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/tonne.
  • Tests from Nomgon-1 indicate main seam is fully gas saturated.
  • Nomgon-2 IFOT 4 delivered world class permeability of 91.5mD.
  • Short term production testing flowed water and gas to surface in 2021.
  • Extended pilot production program commenced in 2022.


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





Elixir Energy’s most mature current asset is its 100% owned Nomgon IX Coal Bed Methane (CBM*) Production Sharing Contract (PSC) project in the South Gobi region of Mongolia.

Elixir Energy commenced a extended pilot production program in late 2022 in its 100% owned Nomgon IX Coal Bed Methane (CBM) Production Sharing Contract (PSC) in the South Gobi Basin, Mongolia.  This is the first such test carried out in the country.

Over the course of 2022, Elixir Energy also undertook exploration and appraisal work across the PSC as it had done since late 2019. The extended pilot production project at Nomgon, which involved the drilling of 2 pilot wells and installing surface facilities, represented the culmination of the prior year’s work – which had made Mongolia’s first gas discovery in 2020.


Aim of the Pilot

    • Dewater coals and flow gas from the Nomgon CBM discovery.
    • Provide proof of concept for commercial development.
    • First extended production test in Mongolia.


    • 2 production wells 100m apart Nomgon-8 and 9.
    • Depth to coal ~450m.
    • Pressure monitoring wells 110 and 400m along strike.


    • Water and gas production over a maximum 6 month period that commenced in 2022.
    • In early 2023 a key milestone was passed of 200,000 standard cubic feet per day (scfpd) of gas for the first time. The Nomgon-9 well exceeded 150,000 scfd of the total.
    • Water production modest at 180 barrels per day.
    • Confirms near 100% gas saturation.

This highly encouraging flow rate presents a number of commercialization options which the Company is pursuing.


On Pathway to Commerciality


Commerciality of CBM production is a function of the following key factors:

  • Estimated ”type curve” of CBM production from an average well – Nomgon-9 to date has a better production profile than in a large producing Chinese field to the South – see below
  • Gas prices – East Asian gas prices are high – reflecting imports by boat and very long pipelines
  • Well costs – these are substantially less in Mongolia than the likes of Australia


Nomgon 9 Flare

Australian Office

Unit 3B, Level 3
60 Hindmarsh Square
Adelaide, SA 5000

+61 08 7079 5610

Mongolian Office

GOH LLC, 13th Floor, Central Park Tower, Genden Street, Chinggis Avenue, Sukhbaatar District, Ulaanbaatar, Mongolia

+976 7755 2011

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