Elixir Energy Limited has given an update on the expanded pilot production project running in the Nomgon IX Coal Bed Methane (CBM) Production Sharing Contract (PSC) in Mongolia.
On 16 November 2022, the two-well Nomgon CBM trial production program was commissioned, and the dewatering of the coals under a controlled production schedule began. The program has now been running for 83 days without incident. The first day of pumping saw an early breakthrough of gas production from the Nomgon-9 well, confirming previous adsorption isotherm test results that revealed the coals were near 100% gas saturated.
Elixir has reported that the combined output of the Nomgon-8 and 9 wells hit 100,000 standard cubic feet per day (scfpd) of gas and 180 barrels per day (BWPD) of water last week and has been gradually increasing.
According to Elixir, this degree of water production (generating water is a common aspect of CBM operations) is relatively low compared to most Australian producing locations. Furthermore, the water salinity appears to have stabilised at less than 5,000 ppm Total Dissolved Solids (TDS), a level that animals may be able to drink. The company added that this is an excellent chance to collaborate with local people on future water production.
Nomgon-9 produces like a typical vertical CBM well, and gas rates have progressively climbed over time, reaching 80,000 scfpd last week. The water output has been largely constant at 160 BWPD. The well is currently shut down for a normal pressure build-up study, after which production testing will resume.
Elixir is beginning to interpret a definite trend on the longer-producing Nomgon-9 well after more than 80 days of production data. Because of the falling reservoir pressure caused by coal dewatering and the resulting increased gas flow, the Company can now estimate an early stage “type-curve,” which will be a critical input for commerciality calculations. Elixir said these would be completed during the next few months.
“Although our ground-breaking Nomgon pilot production test has some months still to go, results to date have been very encouraging. The high gas saturation levels in the coals means minimal water production and very early gas breakthrough – both of which support long-term economics. The gas flows to date are better than regional peers in producing gas fields and in Mongolia we face a long-term lower drilling cost environment than in the likes of Australia – which also supports the economics. We look forward to progressing our CBM program in Mongolia this year – now in parallel with our other major projects – Grandis and Gobi H2,” Elixir Managing Director Neil Young stated.
