Energy: This company made the first coal seam gas discovery in Mongolia
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Elixir Energy (ASX:EXR) has proven the potential of its Mongolian acreage foray after the first well at its Nomgon IX CBM production sharing contract (PSC) was declared a coal seam gas (CSG) discovery.
The Nomgon-1 well measured the average total gas content in the thickest 49m gross (37m net) coal seam package at more than 5 cubic metres per tonne on a raw basis.
Additionally, the range of permeabilities measured during three down-hole tests have met the requirements for a CSG discovery.
CSG is natural gas sourced from coal deposits and typically requires fracture stimulation to produce commercially.
Further laboratory work will now be carried out to measure features such as gas saturation and ash content.
Results of this test work will feed into a planning process, which is now underway to design a testing and delineation program for this sub-basin
“The coal seam gas discovery at Nomgon-1 is the first in Mongolia and a great outcome for the company,” managing director Neil Young said.
“We have now moved onto the technical and regulatory bodies of work required for further work at this location and elsewhere in our massive PSC.
“This de-risking work will increasingly make the PSC more and more attractive to potential partners and discussions with such parties will ramp up in the months to come.”
Meanwhile, Kalina Power (ASX:KPO) has received written expressions of interest from multiple project financing firms to fund its distributed power generation program in Alberta, Canada.
The program consists of an initial five 21 megawatt (MW) projects that combine a 15MW gas-fired turbine with a 6MW power package using the company’s waste heat-to-power technology.
The company said all the offers included workable frameworks with which to negotiate reasonable terms and represented various degrees of emphasis on contracted tolling, merchant risk, number of projects to be funded and the timing of projects to be deployed.
Other firms have also advised of their intention to submit terms over the next two weeks and Kalina will conduct a process to qualify and narrow the list of funders it will negotiate with.
This is expected to lead to formal funding agreements early in the second quarter of 2020.