Mongolia CBM Resources Evaluation

Assess the coal bed methane (CBM) Prospective and Contingent Resources within the Nomgon IX PSC in the South Gobi desert Mongolia. The PSC area is approximately 3 times the size of CBM permits in the Bowen and Surat Basins, and approximately 6 times the size of the Comet Ridge CBM permit, in Australia. The CBM target are the Late Permian coal seams which have been mined in the South Gobi Basin.

Prospective Resources areas were assessed based on surface geology maps, gravity maps, well data and ~300km of 2D seismic lines. Well data included 13 core/strat holes with log data, gas desorption and IFOT test incorporating coal properties from the nearby Tavan Tolgoi mine. Geological chance of success was assessed at 30% with coal characteristics as the main uncertainty.

The estimation of the Contingent Resources in the Tsaagan Tolgoi syncline is based on core-drilling, wireline logs and subsequent scientific analysis. Specific analysis includes Wireline Petrophysics, Coal Gas Desorption Analysis, Coal Adsorption Analysis, Injectivity Fall Off Testing, Chromatographic Gas Analysis and Coal Proximate Analysis, which have all been incorporated in the resource estimations.

Sproule ERCE classified the first Contingent Resources for Elixir and in Mongolia, these are sub-classified as Development Unclarified. Further planned appraisal activities will help to clarify the development in the Tsaagan Tolgoi syncline. Prospective Resources are assessed across the whole PSC. Elixir has announced the Resources assessment on the ASX and announced the achievement of various milestones towards delivering Mongolia’s first gas fired power project using CBM, with support from the Mongolian Government.

Sproule ERCE is one of the largest petroleum Reserves and Resources auditors globally. We have experience working for releases on multiple stock exchanges and our work is compliant with PRMS and utilizes our global analogue knowledge. We are known for our technical expertise and realistic assessments.