Jade Gas Defines Production Licence Area as TTCBM Moves Towards Development

Jade Gas Holdings (ASX: JGH) has lodged its initial Plan for Development of Operations (PDO) with Mongolia’s regulator and signed an agreement for a proposed Production Licence area for its flagship TTCBM project.

The agreed footprint covers about 80% of Jade’s existing 629-square-kilometre Exploration Licence, and includes the Red Lake development area as well as the prospective Vista and Brownhill resource areas.

The regulatory progress follows certification of Jade’s maiden coal bed methane (CBM) reserves and advances the project towards the long-term production rights required for commercial development.

Granting of the Production Licence would move TTCBM from exploration and appraisal into long-term commercial development by providing the tenure and rights needed to develop, produce and monetise its gas resources.

Regulatory Pathway Advancing

Jade has submitted the PDO to the Mongolian Minerals Reserve Council, which will assess the development framework covering drilling, dewatering, gas production and long-term management of field operations.

Approval of the PDO would represent another regulatory milestone following certification of the maiden CBM reserves, which formally moved Jade from explorer to developer in June 2026.

Jade is progressing the PDO and Production Licence processes in parallel as it works through the regulatory and in-country requirements for the TTCBM project.

“The submission of the PDO, following the recent certification of our maiden CBM reserves, represents another major step in transitioning TTCBM from exploration and appraisal towards long-term commercial development,” executive director Joe Burke said.

“These milestones provide Jade with a clear regulatory pathway towards securing long-term tenure, advancing field development, and ultimately moving the broader TTCBM Project into commercial production and monetising its significant gas resources, as we strive to become Mongolia’s first gas developer and Asia’s next emerging energy story.”

Licence Area Across Key Ground

Jade and the Mongolian regulator have agreed on the proposed 502km² Production Licence area, leaving formal granting of the licence as the next tenure step.

The footprint includes Red Lake, which contains Jade’s maiden CBM reserves and is the initial focus of development activities, while retaining substantial coverage across the broader project.

Vista and Brownhill are also contained within the proposed licence area after Jade identified both as gas-bearing and prospective for further resource development.

This gives Jade potential longer-term development coverage beyond Red Lake while keeping its initial commercial focus on the area containing the maiden reserves.

Commercial Transition Emerging

Once granted, Jade intends to use the Production Licence to secure the tenure and production rights required to commercialise gas from the TTCBM project.

The project is operated and managed through Methane Gas Resource LLC, a joint venture company with the Mongolian government.

Jade’s longer-term strategy is to supply gas to Mongolia’s power and heavy vehicle transport sectors, initially in the South Gobi, through compressed natural gas or liquified natural gas projects.

The reserve certification, PDO submission, and agreed Production Licence footprint collectively establish a clearer regulatory sequence as Jade works towards long-term commercial production from TTCBM.