The Elixir Energy Ltd (ASX: EXR) share price is climbing today following the release of an operations update.
During late afternoon trade, the energy producer's shares are fetching for 40.2 cents, up 3%.
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What did Elixir announce?
Investors appear upbeat with the company's latest progress, pushing Elixir shares within reach of its multi-year high of 51 cents.
In a statement to the ASX, Elixir provided an update on the current exploration program at the Nomgon IX Coal Bed Methane (CBM) Production Sharing Contract (PSC).
Located within the Nomgon project in Mongolia, Elixir advised it has spudded its Cracker-1S exploration well yesterday. The drilling is the first in the sub-basin which was identified by the company's 2020 2D seismic program.
A little over a month ago, a second drilling company was sub-contracted by Elixir. It noted that as soon as COVID-19 restrictions lift, it will move to a new area in the sub-basin. This is expected to occur within the next two weeks.
Elixir highlighted that its 2021 2D seismic program has acquired 51 kilometres of new seismic. This is being processed quickly for the expanded drilling program.
Elixir managing director, Neil Young commented:
The Cracker-1S well is an exciting one for the Company, given its significant distance from our prior discoveries. Its geological potential to open up a new sub-basin is supplemented by its favourable location for access to such infrastructure as larger capacity electricity lines and the regional capital.
Elixir Energy share price summary
It's been an impressive 12 months for shareholders who invested in the Elixir share price, recording gains of 1,200%. Looking at year-to-date performance, late investors would also be seeing green, up 220%. Interestingly, the company's shares have been on a strong growth trajectory since the start of the year.
Based on valuation metrics, Elixir commands a market capitalisation of around $337 million, with roughly 842 million shares on issue.
