Past year: ▲ 43%(4.20c – 15.0c AUD)
Each one in plain English, with the numbers worked through for a shareholder.
17 Aug 2023drilling progress report● Neutral
Nomgon pilot returns to managed gas production, with gas still below the original rates but 'a clear increasing trend' emerging; water 110-120 bwpd. Nomgon-10 pilot well to spud late August. Big Slope-7 stopped at 666 m (short of the 800 m once reported) in difficult hole conditions, with 35 m of coal.
16 Aug 2023drilling scheduled● Neutral
Daydream-2 spud is now expected in the last week of October. The rig finishes its current job around mid-October and a new 10,000 psi blowout preventer is due to be installed in early October. The water bore starts by end of August.
17 July 2023drilling progress report▲ Good
Big Slope-7 appraisal well hit gassy coal and is under injectivity testing; Bluebill-1S also intersected gassy coal. The pilot continues with water production ongoing, and planning for another pilot well advances. THREE60 Energy Group engaged to assist with pilot management.
3 July 2023drilling scheduled▲ GoodMajor
Daydream-2 appraisal well at Grandis is set to spud in late October 2023, with an SLB rig contracted and civil works approved. Target depth is about 4,200 m. It aims to expand the 395 Bcf 2C resource; the government R&D incentive covers 43.5% of cost.
13 June 2023drilling spud▲ GoodMajor
Bluebill-1S, the first well of the 2023 Nomgon exploration campaign, spudded 18 km east of the pilot plant. Pilot water is steady at 130 bwpd, gas rates variable. The 9-well program is on track, with appraisal drilling at Big Slope and Yangir due shortly.
20 Dec 2022drilling result▲ GoodMajor
The 2022 drilling program is complete, with 19 wells drilled (11,576 m). The Nomgon pilot is flowing with promising early rates, 99% methane gas and fresher water; stable flow rates are expected early 2023. Big Slope-6 hit 17 m of coal at over 8 m3/t, drilled in under 10 days.
10 Nov 2022resource reserve update▲ GoodMajor
ERCE certified an initial 2C contingent resource of 395 Bcf recoverable gas (1C 93, 3C 1,493 Bcf) plus 3.6 MMbbl condensate at ATP 2044, now named the Grandis Gas Project. Moves the permit bought in August from prospective to contingent resource. Daydream-2 well planned for Q4 2023.
12 Oct 2022drilling result▲ Good
Nomgon-8, the second pilot well, was drilled to 562 m in 10 days (a company record), with ~51 m of coal. Both pilot wells are now drilled; pumping is expected within a month. Big Slope-2 hit ~38 m of coal with gas readings above 7 m3/t, the highest so far in the PSC.
28 Sept 2022drilling result▲ Good
Nomgon-9, the first pilot well, was drilled to 488 m in 11 days (an Elixir record), with ~55 m of coal logged. Nomgon-8 spuds next; pumping is expected in about a month. Management says meaningful gas could come by Christmas, though timing is uncertain.
12 Sept 2022drilling spud▲ GoodMajor
First Nomgon pilot well (Nomgon-8) spudded on 10 September, with the two-well program expected to take under 30 days; gas timing is uncertain. Big Slope-1 cored ~10 m of coal with visible gas, a possible new discovery. Orio-1 and Yangir-5 missed target depth. Major Drilling awarded a fourth rig.
29 July 2022drilling result● Neutral
Venetian-1 found another coal-bearing sub-basin (882 m deep, 6.5 m coal and carbonaceous siltstone). Pilot wells due to spud in August with all equipment in Mongolia. Bulag Suuj-2 and Yangir-4 drilling were slower than expected due to mechanical issues; Orio-1 and Yangir-5 spudded.
22 June 2022drilling result▲ GoodMajor
Bulag Suuj-1S found 21 m of coal, opening a further potential sub-basin; an appraisal well follows. Yangir-4 hit fractured-coal drilling problems and is being re-drilled. 322 km seismic is complete. First pilot well now due to spud around end of August.
5 May 2022drilling progress report● Neutral
Tim-2 reached 1,020 m, Elixir's deepest Mongolian well, but found only 3 m coal plus 5 m silty coal, thinner than Tim-1S, which Elixir attributes to local faulting. Yangir-4 spudded; Bulag Suuj-1S next. 223 of 322 km seismic acquired.
31 Mar 2022drilling result▲ GoodMajor
Tim-1S, south of Tavan Tolgoi, discovered a new coal-bearing sub-basin: 804 m deep, 16 m coal plus 30 m silty coal (46 m total). Tim-2 appraisal is now drilling about 200 m downdip. Two more drilling contractors signed; Major Drilling to drill the pilot wells.
28 Feb 2022drilling spud▲ Good
Elixir spudded Tim-1S, the first of a planned 24-well 2022 program using three drilling companies, south of the Tavan Tolgoi coal mining area (planned depth ~700 m). The 2-well extended pilot is still on track for mid-year drilling.
4 Jan 2022drilling result● Neutral
The 2021 drilling program finished with 17 wells, 65% hitting coal. Richcairn-4 found 20 m of coal; Bag-1S (779 m) found none, and Nomgon-7S became a pilot monitoring well. This lowers the 76% success rate stated on 9 Dec. Elixir won Mongolia's 'Investor of the Year' again.
17 Sept 2021drilling result▲ GoodMajor
Richcairn-1S found 16 m of coal in a new sub-basin over 100 km long, the first well to hit coal purely on seismic. Nomgon Central-1 logged 65 m of coal but gas content looked lower than earlier Nomgon wells. A third rig is being added.
25 Aug 2021drilling result▲ Good
Kingston-3S, drilled to 800 m, logged 6.5 m of coal and extends the Kingston sub-basin to up to 50 km2. Richcairn-1S has spudded in another new area, Nomgon Central-1 is drilling, and seismic has identified a new target, Lattice.
20 July 2021drilling result▲ GoodMajor
Kingston-1S and 2S found 12 m and 8 m of coal, establishing a new coal-bearing sub-basin; Kingston-2S, at 801 m, is Elixir's deepest well yet. Kingston-3S has spudded, and Nomgon Central-1 will spud within a week to help design production tests.
23 June 2021drilling result▲ Good
West Yangir-1, 8 km west of earlier Yangir wells, logged 48 m of coal to 350 m, where depth was cut short by difficult drilling. Manlai-1S failed to reach target depth after mechanical issues. Kingston-1S spudded in a new sub-basin and has hit coal. The first 220 km of 2D seismic is done.
27 May 2021drilling result▼ Bad
Cracker-1S (563 m, new NW sub-basin) hit Triassic rather than Permian rocks, with no clear Permian, a miss the MD says was not in line with aims. A second rig has arrived and spudded Manlai-1S; 140 km of 2021 seismic is acquired.
7 May 2021drilling spud● Neutral
Cracker-1S spudded on 6 May, 130 km northwest of the last well, to test a new sub-basin identified by 2020 seismic. A second drilling company will mobilise within about two weeks as COVID restrictions ease. 51 km of 2021 seismic has been acquired.
28 Apr 2021drilling result▼ BadMajor
Temee-1S, 40 km east of the Nomgon discovery, hit basement and found no coal, marking the eastern limit of coal in that depocentre. This is the first miss, leaving 11 of 12 wells with coal (92%). The first seismic line shows coal-like reflectors in a new sub-basin.
14 Apr 2021drilling result▲ GoodMajor
Yangir-2 reached 578 m. Its gas is 99% methane, sales-gas quality, with raw gas content of 4.2-7.0 m3/t. Only 17 m of coal was logged in the first 300 m, and injectivity tests were uninterpretable because of heavy fracturing. A second rig is added and a 220 km seismic program has started.
7 Apr 2021resource reserve update▲ GoodMajor
Elixir books its first contingent resource, covering the western Nomgon sub-basin: 2C recoverable gas of 24 Bcf (1C 5, 3C 104), unrisked. It also signed a Ministry of Energy MOU and engaged Clarke Energy for a feasibility study on a roughly 10 MW gas-fired power project.
8 Mar 2021drilling spud▲ Good
The Yangir-2 core-hole spudded on 6 March, starting the 2021 field program. It follows Yangir 1S, which found 27 m of visibly bubbling coal in 2020. Mongolia has eased COVID restrictions. Results are still to come.
9 Dec 2020resource reserve update▲ GoodMajor
Independent auditor ERCE lifts Nomgon IX prospective resources for the first time since exploration began. Unrisked best case rises to 48 Tcf, and the risked best case rises 92% to 14.6 Tcf from 7.6 Tcf in 2018. Chance of success is now 30%. A maiden contingent resource is still to come.
3 Dec 2020drilling result▲ GoodMajor
Nomgon-2 adsorption results show fully gas-saturated lower coals, matching Nomgon-1 (the lab's remaining results still to come). Yangir 1S was abandoned at ~347 m after mechanical problems under COVID restrictions, and 2020 operations are wrapped up. A 2021 program restarts around February with a core-hole at Yangir.
23 Nov 2020drilling result▲ GoodMajor
Yangir 1S, in a new sub-basin 24 km WNW of Nomgon-1, hit 27 m of coal with unusually active gas bubbling at shallow depth. Hutul 1S found 6 m of coal 19 km east, with extension or new basin undetermined. Final 2020 well may slip due to COVID.
5 Nov 2020drilling result▲ Good
The Nomgon 5S re-drill reached 450 m and logged 47 m of net coal, a 7.3 km step-out from the Nomgon-1 discovery, replacing the earlier mechanically troubled hole. Hutul 1S is drilling ahead. Management says updated prospective resources, then a maiden contingent resource, will follow.
