• Gas & water flowed to surface from Nomgon-6 well
• Data secured for long term pilot production program next year
• Richcairn-2S and Richcairn-3S intersect coals as planned
• Third rig spuds Richcairn West-1S well

Elixir Energy today provides an operations update on the current exploration/appraisal program underway across its 100% owned Nomgon IX Coal Bed Methane (CBM) Production Sharing Contract (PSC).

Elixir has spent the past few weeks carrying out extensive testing work at the Nomgon 6 well. The key results of this can be summarized as follows:

• Fluids flowed to surface from four separately tested zones
• Measured the presence of methane from all zones with a hand held gas-meter
• Cumulative water production rate for the 4 zones was 280 barrels of water per day (BWPD)

The Nomgon 6 well was drilled to a total depth of 501 metres and intersected 84 metres of coal, of which 63 metres was in the primary objective “100 series” coal. Cores were taken and gas content and gas composition in the 100 series was consistent with prior wells in the area.

Four air-assisted drill stem tests (DSTs) were performed over the 100 series coal. Each DST consisted of an air assisted flow test (AAFT), a conventional in-flow test (CIT) and injectivity fall off test (IFOT). A cumulative stabilized water rate of 280 BWPD was recorded.

The presence of gas at surface was evidenced from a wellsite gas-meter, which recorded methane at concentrations of up to 25,000 ppm over a background of zero (uncalibrated1).

Note 1: Although the gas-meter is regularly calibrated for methane and other gases,and there is no doubt about the presence of gas, the procedure for sampling the gas at the wellsite is not calibrated, and the results should be treated as qualataiitve only.

KeyFacts Energy: Elixir Energy Mongolia country profile