Australia's Jade Gas signs $1.1B Red Lake deal

• Jade Gas signed a non-binding agreement to secure an estimated $1.1 billion in development funding for its Red Lake Project.
• Following the announcement, shares in the energy explorer fell 4.5% to $0.105 during trading.
• The agreement aims to fund drilling operations and support long-term commercial gas development in Mongolia.

Jade Gas (ASX:JGH) signed a non-binding agreement to secure up to $1.1 billion in development funding for Red Lake.

The framework deal follows earlier appraisal drilling that confirmed multiple gas-bearing coal seams at the Mongolian project.

"Having a collaboration with a company with vast experience is a huge advantage," said Jade Gas Executive Director Joseph Burke.

The company stated that the non-binding agreement remains subject to due diligence, definitive contracts, and regulatory approvals.

Following the announcement, the Jade Gas share price was down at $0.105.

The explorer holds a 60% operating interest in the Tavantolgoi coal bed methane project located in southern Mongolia.

Jade Gas previously booked maiden coal seam reserves and secured key government approvals to support regional energy markets.