The Elixir Energy Limited (ASX: EXR) share price has powered up this morning after the company released an update regarding 3 operations.
The Elixir Energy share price gained 16% in early morning trade but has since retreated. At the time of writing its trading at 45 cents, a gain of 4.65%.
Let's look closer at the company's news today.
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Why is the Elixir Energy share price lifting?
A new contract
First, the company shared an update from the exploration and appraisal program underway at its Nomgon IX Coal Bed Methane (CBM) Production Sharing Contract Project.
The CBM is based in Mongolia and owned entirely by Elixir Energy.
Elixir advised the first well in CBM's 2021 drilling program, Yangir-2, has been finished. It found a highly fractured depocentre hosting gaseous rocks.
The company said the results were encouraging for permeability and gas content but have made for "more complex drilling operations". The desorbed gas was found to contain 99% natural gas, with no additional processing needed before going to market.
Two more drilling rigs are to be begin drilling wells later this month, targeting both new and previously recorded depocentres.
Elixir Energy's largest seismic program
The company also announced that it has just started its largest seismic program to date. A seismic survey is a non-invasive way to gather information about the location and characteristics of geological structures beneath the earth's surface.
Elixir's program comprises 220km of 2D seismic. Multiple depocenters are to be targeted, made up of both new seismic work and follow-ons to existing seismic work.
COVID-19 update
Finally, the company provided an update on the impact the COVID-19 situation in Mongolia is having on its business.
Mongolia is currently experiencing government mandated lockdowns and border controls.
Elixir Energy stated it was working closely with the government to work within the rules with minimal affects to its field program.
The company has vaccinated its staff and contractors and implemented isolation procedures. It believes it's now set up for maximum resilience against any issues that may arise from the ongoing pandemic.
What did management say?
Elixir Energy managing director Neil Young commented on the company's updates, saying:
Elixir's 'rinse and repeat' model for the repeatable and low cost discovery and appraisal of gas on the Mongolian/Chinese border continues to successfully roll out in 2021.
Especially pleasing recent news is the sales gas specification (and strong gas content) from Yangir-2 and the ability of our broad team to work through the current COVID related issues.
Elixir Energy share price snapshot
Elixir Energy is having a good year on the ASX, with today's news just the latest boost to its share price.
Currently, the energy company's share price is up 225% year to date. It's also up a whopping 2,175% over the last 12 months.
Elixir Energy has a market capitalisation of around $348 million, with approximately 811 million shares outstanding.
