ELIXIR Petroleum is soon heading to Mongolia to meet with the Asian nation’s cabinet in pursuit of a Production Sharing Agreement, which if awarded will grant the right to explore and develop Coal Bed Methane also known as CSG (Coal Seam Gas).

ELIXIR Petroleum is moving on Mongolian CSG with the deadline for a third party superior offer on Golden Horde passed amid moves to begin desktop exploration work to shore up previous studies and find the most prospective areas in the enormous 7 million acre Gobi Desert holding.

The junior has now hired a technical adviser for its desktop study of the area, which will determine high grade explorations areas for the 2018 and 2019 drilling campaigns, with plans for two wells at a cost of USD 500,000.

It has been working on a PSC with the Mongolian government, with its holdings in the South Gobi Desert in what is considered to be one of the most prospective basins in the country which surrounds one of the world’s largest producing thermal coal deposits.

Tavan Tolgoi has an estimated resource of 6 billion tonnes of thermal coal and produced 14 million tonnes last year at depths of 467m which is ‘a good indication that surrounding areas are likely to contain similar gas content levels,’ ELIXIR has previously said.