Jade Gas Books Maiden Coal Seam Reserves for TTCBM Project in Mongolia

Jade Gas (ASX: JGH) has had its maiden in-country coal seam gas reserves approved by the Mongolian Minerals Reserves Council (MRC) in accordance with the relevant regulatory framework.

The reserve booking for the Tavan Tolgoi coal bed methane (TTCBM) project in the South Gobi region evaluates 4.2 square kilometres (or 7%) of the 60sqkm Red Lake field but does not account for other gas accumulations in the broader area such as Vista and Brownhill.

It comprises gross recoverable reserves of 316 million standard cubic feet (2P) and 793MMscf (3P) and net recoverable reserves of 165MMscf (2P) and 384MMscf (3P) over a small area around coal seam IIIb, where Jade has intersected up to seven gas-bearing seams.

TTCBM is expected to become a scalable gas development delivering cleaner domestic energy to Mongolian industry and households over the long-term, reducing dependence on unreliable imports and contributing to national decarbonisation objectives.

Critical Regulatory Process

The reserve booking—a critical process in the Mongolian regulatory pathway to development—follows Jade’s extensive exploration and appraisal efforts and conceptual development planning work at TTCBM.

It establishes a key basis for subsequent permitting and development activities, supports the securing of project financing for planned surface facility infrastructure and overall field development, and paves the way for the company to submit its plan for development of operations (PDO).

The PDO will define the project’s technical scope, infrastructure design, production forecasts, and environmental management commitments.

“The approval of our maiden reserves by the Mongolian Minerals Council is a fantastic outcome and a major step forward for the company,” non-executive director Ian Wang said.

“We will continue to develop our reserve migration to bring more resources into 1P, 2P, and 3P categories and move towards PDO approval, Exploitation Licence, and ultimately unlock the value of this important project for the country of Mongolia.”

Moderate-Scale Development

Phase 1 of TTCBM will be a moderate‑scale, modular development comprising a drilling campaign of up to 175 wells focused on supplying LNG to the local transport network, with optional supply to mining operations and industrial power users.

The broader field development will include approximately 800 wells with a potential project life exceeding 30 years.

Following approval of the PDO, Jade will lodge an exploitation licence application to transition the project from appraisal to commercial field development and commercial gas production at scale.

The company remains actively engaged with domestic and international parties including energy offtakers and infrastructure providers as it explores a range of participation structures for the TTCBM project.