AUSTRALIAN headquartered Elixir Energy has quickly become one of the most exciting oil and gas stocks on the Australian Securities Exchange.

Elixir Energy (ASX: EXR) is creating a whole new gas market in Mongolia which is home to vast coal reserves, and of course coal seam gas.

The company, led by managing director Neil Young, holds around 7 million acres of highly prospective land in the Southern Gobi desert.

It released its maiden resource estimate in April, based on just 2% of its acreage, dubbed Nom Gon XI, with 60 billion cubic feet of gas on a 2C basis, and 24 Bcf of recoverable gas.

This estimate is more than sufficient to provide feed gas for a power plant's entire life cycle, offering electricity to the domestic market, but also opening opportunities for LNG provision to local mining companies and export to China.

Gas is fast becoming the transition fuel of the future and it is also expected to replace Mongolia's ageing coal power plant fleet which are heading to the end of their lives.

Furthermore, mining companies including Rio Tinto which operates the huge Oyu Tolgoi copper mine, are seeking power for their processing plants and to replace their diesel trucks with LNG fuelled vehicles.

In this podcast, Energy News' senior journalist Paul Hunt talks to Elixir Energy managing director Neil Young about the future of the discovery, what an initial development could look like, and the current state of the energy market in China and Mongolia.

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Read more about Elixir Energy here.