Elixir Energy Limited (ASX: EXR) is an Australian Securities Exchange listed oil and gas exploration and development company. It is focused on exploring in Mongolia for natural gas in the form of coal-bed methane (CBM).
In Australia CBM is also known as coal seam gas (CSG).
EXR’s Corporate Vision is simply “to find large gas reserves on the Chinese border”.
In Mongolia, EXR holds 100% of a CBM production sharing contract (PSC), located just to the North of the Mongolian/Chinese border. The PSC was signed in September 2018 with the Mineral Resources and Petroleum Authority of Mongolia (MRPAM).
The licence area covered is ~30,000 square kilometers (~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).
EXR acquired the PSC through the back-door listing of unlisted Australian public company Golden Horde Ltd, which was set up in 2011 solely to acquire CBM rights in Mongolia. The company’s founders accordingly have strong networks in, and experience of, Mongolia.
Australia is the global leader in CBM production and exports the gas extracted from Queensland coal seams to various Asian countries, including China, Japan and South Korea.
EXR is taking Australia’s leading CBM expertise to Mongolia.
The company successfully ended its 2019 exploration program, which comprised shooting 2D seismic and drilling a number of wells. The last well in the first year’s program - Nomgon-1 - made a coal seam gas discovery. The plans for 2020 are to undertake further delineation work around Nomgon-1 and pursue further exploration work (seismic and drilling) across the vast PSC.