Elixir Energy has signed a binding drilling services contract with Mongolian company Erdene drilling for its Nomgon project. The contract enables Elixir to drill two fully tested coal-bed methane (CBM) core-holes with the option for another well.

Elixir estimates the first well will be spudded in or around late September or early October. These will be the first CBM wells in Mongolia to be tested to international best practice gas industry standards. Erdene has sub-contracted Arizona based coal gas technology (CGT) to supply equipment and technical services in connection with gas content testing. CGT has more than 30 years of experience in providing such services to the CBM industry- across North America, Australia, China and other countries. Elixir will directly source permeability testing services from Australia.