Jade Gas begins multilateral drilling at Red Lake Project
- Jade Gas started drilling a 3,700-metre multilateral well at Red Lake in Mongolia.
- The project targets higher flow rates across 2,950m of in-seam coal drilling.
- Negotiations continue for a US$762.5 million development funding package targeted for November.
Jade Gas (ASX:JGH) has commenced drilling its third horizontal production well at the Red Lake coal bed methane project in Mongolia, featuring 3,700m of planned total drilling.
The new multilateral completion design incorporates five lateral sidetracks to expand reservoir contact beyond the scope of previous single-lateral wells.
"Multilateral designs are well established in China’s Qinshui Basin, and our aim is to apply this approach to unlock more of Red Lake’s gas potential," said Jade Gas Executive Director Dr Ian Wang.
The operation targets 2,950m of in-seam drilling in Seam IIIb, with drilling and completion scheduled to finish before the end of November.
The company stated that the new well design is expected to deliver higher gas flow rates and provide operational data ahead of a larger drilling programme planned for 2027.
Jade Gas remains in negotiations with a Chinese-led consortium to fund 100 per cent of the proposed US$762.5 million Phase 1 development comprising 175 production wells.
The company transitioned from an explorer to a developer after securing official approval for Mongolia's first natural gas reserves in June.
