Elixir Energy Limited provided an update on the coal bed methane (CBM) pilot project underway in its 100% owned Nomgon IX CBM Production Sharing Contract (PSC). The first well in the Company's extended pilot production program (Nomgon-9) has recently been successfully drilled and completed. The well was drilled to a total depth of 488 metres in 11 days (which is a record for Elixir) - safely, on time and on budget.

Approximately 55 metres of coal were logged over the primary target "100 series coal" and a perforated liner installed over this section. The rig is now moving to the location for the second and final pilot well (Nomgon-8), which is due to spud later this week. Post the completion of Nomgon-8, down-hole pumps will be installed in both wells together with production skids, pipework and a flare.

Elixir plans to commence pumping fluids from the two pilot wells in around a month. Elixir has also initiated a baseline environmental monitoring program in the immediate region surrounding the pilot area, which is over and above the relevant regulatory requirements. This is the first time these have been used in the Gobi.