Elixir Energy is a significant player in the global energy industry, with a specific focus on exploring coalbed methane (CBM) or coal seam gas (CSG) in Mongolia, a Central Asian country that is home to significant untapped natural resources. Established in 2005, the company, initially known as Entek Energy, was rebranded as Elixir Energy Limited in 2019 to mark a shift in focus towards natural gas exploration.
Elixir Energy is primarily known for its ground-breaking project – the Nomgon IX Production Sharing Contract (PSC). This project, located in southern Mongolia, covers an overall area of approximately 30,000 km square, making it larger than countries such as Belgium or Israel. With the PSC, Elixir obtained exclusive rights to explore and exploit any hydrocarbons, particularly CBM, found within the contract area.
The region has reliable logistics with the advantage of roads leading to China, which creates an attractive potential market for gas production. With a booming energy demand, China has become the world’s most prominent pure-play unconventional gas consumer, making it a primary target for Elixir Energy.
The exploration of untapped resources, specifically the CBM, is a key objective for Elixir Energy. CBM, found in coal deposits, is formed during the process of coalification, where organic matter is converted to coal. This untapped methane is considered a valuable source of energy but can also cause catastrophic explosions in mines if not appropriately managed. By extracting and commercializing CBM, Elixir Energy helps to mitigate this risk and contribute to global energy solutions.
An essential aspect of Elixir Energy’s exploration strategy is its collaborative and innovative technological approach. They employ modern technologies to optimize the process of gas extraction and reduce potential environmental impacts. From seismic surveys to core hole drilling and production tests, Elixir Energy ensures it is at the forefront of technological advancements in the energy industry.
One such examples of these technological innovations is the use of cooperative technologies between Elixir and Mongolia’s drilling industry for a successful core-hole drilling sequence. This helped to unearth the promising potential of untapped coal seams and subsequently led to substantial gas flow rates that can be further explored for commercialization.
Corporate social responsibility (CSR) also plays an integral role in Elixir Energy’s operations. The company is committed to operating in a safe and environmentally friendly manner on local, regional, and global levels. In compliance with international best practices, Elixir carefully manages its environmental, social, and governance principles, respecting human rights, community participation, employee safety, and minimizing environmental degradation.
Moreover, by capitalizing on Mongolia’s untapped natural resources and providing a cleaner energy solution, Elixir Energy is playing a crucial role in the country’s economic development. In addition to monetary benefits, such as royalties and taxes, the company’s operations also create employment opportunities, assisting in local community development.
Elixir Energy, with its advanced technological methodologies, strategic location, and commitment to CSR, is undoubtedly becoming a significant player in the global energy market. The company’s dedication to safe and sustainable extraction of CBM sets it apart from the competition, making it not just a contributor to the energy market, but also a protector of environmental security. With its impressive strategy and commitment to sustainability, Elixir Energy is surely a name to watch in the industry.
