Jade Gas Holdings (ASX: JGH) has announced the successful conclusion of its TTCBM appraisal program in Mongolia, marking a critical step towards formal development plans for its significant gas project.
With the TTCBM appraisal program concluded, the Red Lake gas field appraisal report has now also been submitted.
Jade Gas intends to lodge its maiden gas reserve booking with the Mongolian Minerals Reserve Council within one week.
This reserve booking, which will cover an area of 4.2 square kilometres, is a prerequisite for submitting a Plan for Development of Operations (PDO) and applying for an exploitation license.
Phased Development and Future Outlook
The development plan outlines a phased approach, starting with Phase 1 drilling of up to 175 wells.
The project has a potential full-field development of around 800 wells over a greater than 30-year life.
Early LNG supply to local networks is planned, with ongoing commercial discussions supporting project progression.
PDO approval is anticipated to de-risk the project and bolster investment confidence, facilitating access to funding, while positive commercial discussions with partners are also ongoing.
The project aims to supply LNG to Mongolia’s transport network and local industry, supporting energy independence and decarbonization.
Previous Gas Quality and Financing
Previous analysis highlighted high methane purity (~97.2-97.4%) and low CO2 (<1%) in gas from the Red Lake field, supporting LNG and other market applications.
A non-binding Letter of Intent (LOI) for up to US$46 million in midstream project financing was previously signed, contingent on definitive agreements and regulatory approvals.
The company has two CBM wells currently online and producing, with a first LNG sales agreement secured with UB Metan.
The appointment of an experienced Managing Director with extensive global energy deal development experience is expected to accelerate Jade Gas's transition from explorer to producer.
This strategic move aims to establish revenue pathways for the TTCBM project and potentially enhance funding access as the company advances its development plans.
