{"id":4355,"date":"2020-07-01T10:36:27","date_gmt":"2020-07-01T00:06:27","guid":{"rendered":"https:\/\/strawman.com\/blog\/?p=4355"},"modified":"2020-07-01T10:36:28","modified_gmt":"2020-07-01T00:06:28","slug":"cashed-up-exr-to-commence-round-two-of-drilling","status":"publish","type":"post","link":"https:\/\/strawman.com\/blog\/cashed-up-exr-to-commence-round-two-of-drilling\/","title":{"rendered":"Cashed up EXR to commence round two of drilling"},"content":{"rendered":"\n<p class=\"has-drop-cap\">Elixir Energy (<a href=\"https:\/\/strawman.com\/member\/company\/forecasts\/EXR\">ASX:EXR<\/a>) has reported its final gas content figures from its Nomgon-1 well at its 7 million acre (30,000km<sup>2<\/sup>) coalbed methane (CBM) production sharing contract (PSC) in Mongolia\u2019s South Gobi Desert on the Chinese border.<\/p>\n\n\n\n<p>The impressive results follow Elixir\u2019s completion of its initial exploration program in February, capped off with Mongolia\u2019s first ever CBM \u2014&nbsp;or coal seam gas (CSG) as it is known in Australia \u2014 discovery at the Nomgon-1 well during its initial season of exploration.&nbsp;&nbsp;<\/p>\n\n\n\n<p>Now, with final Nomgon-1 well gas content figures in hand, and cash in the bank following a <a href=\"https:\/\/finfeed.com\/small-caps\/mining\/elixir-capital-raising-receives-outstanding-support\/\">recent heavily oversubscribed capital raising<\/a>, Elixir is embarking on an expedited second year of exploration with a follow up drilling and seismic campaign.&nbsp;&nbsp;<\/p>\n\n\n\n<p>The company\u2019s 100% owned PSC lies over a major Permian coal bearing region and has a giant independently certified CBM risked mid-case prospective resource of 7.6 Tcf and an un-risked prospective resource of 40 Tcf.<\/p>\n\n\n\n<p>Final gas content figures from Nomgon-1 post well analysis were made available on 26 June.<\/p>\n\n\n\n<p>The Raw gas content figure was 5.3 m3\/t, recorded at the largest coal seam (37m net), known locally as the \u201c100\u201d series.<\/p>\n\n\n\n<p>Most gas content numbers quoted are done on a DAF basis, rather than Raw, so the more important figure to note is Elixir\u2019s reported Average Gas Content (DAF) figure of&nbsp;8.9 m3\/t for \u201c100\u201d series coal.<\/p>\n\n\n\n<p>That said, gas content reporting is often poorly done and is quite inconsistent, making it quite challenging to compare results. Many companies will only report good results, or only provide broad ranges, or don\u2019t even define the unit of measurement.<\/p>\n\n\n\n<p>Yet the figures reported by Elixir do look to compare very well with CSG projects globally.&nbsp;&nbsp;<\/p>\n\n\n\n<p>Elixir\u2019s 8.9 m3\/t DAF gas content figure from \u201c100\u201d series coal at the Nomgon-1 well stacks up against a number of recognisable names in Australia.<\/p>\n\n\n\n<p>Galilee Energy\u2019s flagship Glenaras Gas Project in Queensland\u2019s Galilee Basin, for example, that has a reported DAF gas content of 5.3 m3\/t.<\/p>\n\n\n\n<p>Similarly, Sunshine Gas\u2019 Lacerta CSG field in the Surat Basin in Queensland \u2014 which is now owned by Senex Energy \u2014 has a reported maximum 5.0 m3\/t DAF gas content.<\/p>\n\n\n\n<p>Also in Queensland, is Comet Ridge\u2019s Mahalo Project where average gas content ranged between ~5.0 and 7.6m3\/t.&nbsp;<\/p>\n\n\n\n<p>Following the success of the initial exploration campaign, Elixir is now pushing forward with its second season of drilling and seismic program at the Nomgon IX PSC that\u2019s set to commence in July.&nbsp;<\/p>\n\n\n\n<p>In its second-year work program, Elixir will acquire new 2D seismic data along prospective trends and explore in new sub-basins that will involve drilling on 2019 and 2020 seismic.<\/p>\n\n\n\n<p>The company will appraise the Nomgon-1 well CSG discovery and provide further data for a contingent resource booking in the Nomgon sub-basin, which is targeted for the year\u2019s end.<\/p>\n\n\n\n<p>The upcoming work program will also see Elixir build the sub-surface foundations for offtake projects such as Small Scale LNG (SSLNG) and\/or small scale gas fired generation.<\/p>\n\n\n\n<p>Elixir is undertaking a stepped approach where it plans to prove up its discovery through small scale LNG and\/or power developments to demonstrate commerciality to potential farm-in partners.<\/p>\n\n\n\n<p>Having recently completed a heavily oversubscribed Placement and Share Purchase Plan (SPP), Elixir is well funded to expedite delineation and further exploration efforts at the PSC.<\/p>\n\n\n\n<p>The company has also recently <a href=\"https:\/\/finfeed.com\/small-caps\/energy\/exr-develop-small-scale-lng-plant-its-first-gas-offtake-project\/\">secured its first offtake project<\/a>, partnering with one of Mongolia\u2019s largest fuel retailing firms,&nbsp;<a href=\"https:\/\/mtgroup.mn\/\">MT Group<\/a>,&nbsp;to develop the country\u2019s first Small Scale LNG (SSLNG) plant supplied from local CBM.<\/p>\n\n\n\n<p>A project of this scale, coupled with its proximity to a gas hungry China, means Elixir has the scale to attract a high quality farm out partner in the future. But first, the company must continue to prove up the resource potential ahead of a contingent resource booking by the end of the year.&nbsp;<\/p>\n\n\n\n<p>Longer term, Elixir has an eye on proving up the potential in its vast PSC block and ultimately bringing in high quality partners who can help bring a very large potential resource into production.<\/p>\n\n\n\n<p><\/p>\n\n\n\n<hr class=\"wp-block-separator\"\/>\n\n\n\n<p class=\"has-text-color has-cyan-bluish-gray-color\"><em><strong>Disclaimer\u2013<\/strong> <\/em> <em>This content was produced and paid for by StocksDigital. The author may hold positions in the stocks mentioned in this publication, at the time of writing. The information contained in the publication and the links shared are general in nature and does not take into account your personal situation. You should consider whether the information is appropriate to your needs, and where appropriate, seek professional advice from a financial adviser. For errors that warrant correction please contact the editor at admin@strawman.com.<\/em><\/p>\n\n\n\n<p class=\"has-text-color has-background has-very-dark-gray-color has-very-light-gray-background-color\"><em>Strawman is Australia&#8217;s premier online investment club. Join for free to access independent &amp; actionable recommendations from proven private investors.<\/em><br><\/p>\n\n\n\n<div class=\"wp-block-button aligncenter\"><a class=\"wp-block-button__link has-text-color has-very-light-gray-color has-background has-tertiary-background-color\" href=\"https:\/\/strawman.com\/member\/landing\/signup\">Register for free ASX recommendations<\/a><\/div>\n\n\n\n<hr class=\"wp-block-separator\"\/>\n\n\n\n<p class=\"has-text-color has-text-align-center has-cyan-bluish-gray-color\">\u00a9 2020 Strawman Pty Ltd. All rights reserved.<\/p>\n\n\n\n<p class=\"has-text-align-center\">| <a href=\"https:\/\/strawman.com\/member\/landing\/privacy\">Privacy Policy<\/a>&nbsp;|&nbsp;<a href=\"https:\/\/strawman.com\/member\/landing\/terms\">Terms of Service<\/a> | <a href=\"https:\/\/strawman.com\/member\/landing\/fsg\">Financial Services Guide<\/a> | <\/p>\n\n\n\n<p class=\"has-text-color has-text-align-center has-cyan-bluish-gray-color\">ACN: 610 908 211 <\/p>\n","protected":false},"excerpt":{"rendered":"<p>Elixir Energy (ASX:EXR) has reported its final gas content figures from its Nomgon-1 well at its 7 million acre (30,000km2) coalbed methane (CBM) production sharing contract (PSC) in Mongolia\u2019s South Gobi Desert on the Chinese border. The impressive results follow Elixir\u2019s completion of its initial exploration program in February, capped off with Mongolia\u2019s first ever CBM \u2014&nbsp;or coal seam gas [&hellip;]<\/p>\n","protected":false},"author":18,"featured_media":4356,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[100],"tags":[],"class_list":["post-4355","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-sponsored"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.4 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Cashed up EXR to commence round two of drilling - Strawman Blog<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/strawman.com\/blog\/cashed-up-exr-to-commence-round-two-of-drilling\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Cashed up EXR to commence round two of drilling - Strawman Blog\" \/>\n<meta property=\"og:description\" content=\"Elixir Energy (ASX:EXR) has reported its final gas content figures from its Nomgon-1 well at its 7 million acre (30,000km2) coalbed methane (CBM) production sharing contract (PSC) in Mongolia\u2019s South Gobi Desert on the Chinese border. The impressive results follow Elixir\u2019s completion of its initial exploration program in February, capped off with Mongolia\u2019s first ever CBM \u2014&nbsp;or coal seam gas [&hellip;]\" \/>\n<meta property=\"og:url\" content=\"https:\/\/strawman.com\/blog\/cashed-up-exr-to-commence-round-two-of-drilling\/\" \/>\n<meta property=\"og:site_name\" content=\"Strawman Blog\" \/>\n<meta property=\"article:published_time\" content=\"2020-07-01T00:06:27+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2020-07-01T00:06:28+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/strawman.com\/blog\/wp-content\/uploads\/2020\/07\/oil.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"2324\" \/>\n\t<meta property=\"og:image:height\" content=\"1447\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Jonathan Jackson\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Jonathan Jackson\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"4 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\\\/\\\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\\\/\\\/strawman.com\\\/blog\\\/cashed-up-exr-to-commence-round-two-of-drilling\\\/#article\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/strawman.com\\\/blog\\\/cashed-up-exr-to-commence-round-two-of-drilling\\\/\"},\"author\":{\"name\":\"Jonathan Jackson\",\"@id\":\"https:\\\/\\\/strawman.com\\\/blog\\\/#\\\/schema\\\/person\\\/27228d008a7ce9d1016b82a73f3cc8a9\"},\"headline\":\"Cashed up EXR to commence round two of drilling\",\"datePublished\":\"2020-07-01T00:06:27+00:00\",\"dateModified\":\"2020-07-01T00:06:28+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\\\/\\\/strawman.com\\\/blog\\\/cashed-up-exr-to-commence-round-two-of-drilling\\\/\"},\"wordCount\":825,\"image\":{\"@id\":\"https:\\\/\\\/strawman.com\\\/blog\\\/cashed-up-exr-to-commence-round-two-of-drilling\\\/#primaryimage\"},\"thumbnailUrl\":\"https:\\\/\\\/strawman.com\\\/blog\\\/wp-content\\\/uploads\\\/2020\\\/07\\\/oil.jpg\",\"articleSection\":[\"Sponsored\"],\"inLanguage\":\"en-US\"},{\"@type\":\"WebPage\",\"@id\":\"https:\\\/\\\/strawman.com\\\/blog\\\/cashed-up-exr-to-commence-round-two-of-drilling\\\/\",\"url\":\"https:\\\/\\\/strawman.com\\\/blog\\\/cashed-up-exr-to-commence-round-two-of-drilling\\\/\",\"name\":\"Cashed up EXR to commence round two of drilling - 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