Commences Second Production Well
Sydney, April 3, 2025 AEST (ABN Newswire) - Jade Gas Holdings Limited (
ASX:JGH) is pleased to announce drilling has commenced on the second Red Lake lateral gas production well. This second well immediately follows the successful completion of the first horizontal well1 at the Red Lake gas field, located in the South Gobi region of Mongolia.
Highlights
- Following successful completion of first production well, Jade has commenced drilling of its second horizontal production well at the Red Lake gas field
- First horizontal production well casing cementing operations completed with well to now be equipped for gas production
- Jade remains on track for first gas production mid-2025
Gas Production Program
Located approximately 100m south from the first production well (RL-Hz-002), and drilled from the same pad, RL-Hz-001 is to be drilled to a target measured depth (mMD) of approximately 1600mMD on similar trajectory to RL-Hz-002, which intersected almost 700m of gas bearing coal in seam IIIb, with 98.6% net coal. With the top section of the hole previously completed, the drilling of the horizontal section through to TD is expected to take approximately 12 days. After installation of the liner and production casing both wells will be completed with downhole pumps and commence dewatering in late April 2025.
Commenting on the drilling progress, Jade Executive Chairman, Dennis Morton, said:
"Excellent results from the first horizontal gas production well in our program have been enthusiastically received by all our shareholders and also stakeholders in Mongolia. This is the first ever horizontal coal seam gas production well to have been drilled in Mongolia. Our drilling contractor, DWK, has performed extremely well. We look forward to maintaining the momentum with the drilling of the horizontal section of RL-Hz-001, immediately followed by the downhole completions for both wells in order to commence coal dewatering operations and gas production."
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About Jade Gas Holdings Ltd
Jade Gas Holdings Limited (ASX:JGH) is a gas exploration company focused on the coal bed methane (CBM) potential of Mongolia. Jade's flagship project is the Coal Bed Methane gas project over the Production Sharing Agreement (PSA) area of Tavantolgoi XXXIII unconventional oil basin, (TTCBM Project). Jade operates and manages the project through its subsidiary Methane Gas Resource LLC (MGR), a joint venture (JV) company partnering with Erdenes Methane LLC (EM), the representative of the Mongolian Government. The TTCBM Project has a 2C Gross Unrisked Contingent Resource of 246 Bcf.
Jade also entered into a JV with Hong Kong listed Mongolia Mining Corporation Limited (MMC), for the CBM rights over MMC's Baruun Naran coal mine, immediately adjacent to the TTCBM Project, called the BNG Project. MMC is Mongolia's largest publicly traded miner with a vision is to become the country's largest diversified mining company. With a known coal resource and operating mine at Baruun Naran, Jade is working with MMC to further appraise and determine the commercial pathway for gas in this project.
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