An SA company has more than doubled in value today after a potential gas find
An Adelaide company with its sights set on Mongolian gas has had some good drilling results.
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Shares in Adelaide company Elixir Energy have more than doubled after it intersected “good quality coals’’ in a gas drilling campaign in Mongolia.
The junior company, which has a heavyweight board including Richard Cottee and former Santos executive Neil Young, told the ASX that its Nomgon-1 well had intersected 82m of net coal including a 51m-thick coal seam.
Elixir said its “key objective’’ was to discover “thick, gassy coal seams below 300m’’.
“The results to date of the Nomgon-1 well have met that goal,’’ it said.
The shares took off on the news, jumping more than 130 per cent to 4.4c. The company is still a minnow however, with its market cap before the share surge just under $10 million.
“Abundant gas bubbling from the recovered core was noted across the whole interval prior to it being representatively sampled for gas content desorption measurement,’’ the company said.
More accurate testing and logging will deliver more data on the well shortly, with permeability testing results also to follow.
The project is wholly owned by Elixir.