Jade Gas (ASX:JGH) has concluded its TTCBM appraisal program in Mongolia, marking a critical milestone in the development of its Red Lake Gas Project.
Following the completion of the program, the company has submitted the Red Lake gas field appraisal report and intends to lodge its maiden gas reserve booking with the Mongolian Minerals Reserve Council within one week.
The booking, covering a 4.2-square-kilometre area, is a necessary prerequisite for submitting a plan for development of operations and applying for an exploitation license.
The company's phased development strategy outlines an initial drilling program of up to 175 wells, with a potential full-field expansion to approximately 800 wells over a project life exceeding 30 years.
The project aims to supply LNG to Mongolia’s transport network and local industry, supporting energy independence and decarbonisation initiatives.
Previous analysis has highlighted high methane purity of approximately 97.2-97.4% and low CO2 levels, bolstering the project’s commercial viability.
Jade Gas has secured a first LNG sales agreement with UB Metan and has signed a non-binding Letter of Intent for up to US$46 million in midstream project financing.
To accelerate its transition from explorer to producer, the company has appointed a new Managing Director with extensive global energy deal experience.
At the time of reporting, Jade Gas' share price was $0.025.