Jade Gas targets deeper Mongolian gas potential
- Jade Gas initiated a new exploration programme to investigate deeper gas potential at its flagship project in Mongolia.
- The company’s stock price held steady as investors digested the broader exploration scope beyond shallow coal seams.
- Management aims to leverage regional geological models from China to discover additional stacked gas horizons.
Jade Gas Holdings (ASX:JGH) has launched an exploration initiative targeting deeper gas-bearing horizons beneath the shallow coal seams at its flagship TTCBM Project in Mongolia.
The broader exploration focus follows historical results from similar regional geological structures in China's Ordos Basin, such as the Linxing gas field, which demonstrated stacked CBM, shale, and sandstone gas zones.
Jade Gas Holdings has received inbound enquiries from international energy companies regarding the deeper gas-bearing potential at TTCBM.
Jade Gas Executive Director Dr. Ian Wang said, “The planned 2D and 3D seismic programme will allow us to evaluate the broader geological sequence and identify any additional prospective gas-bearing horizons beneath those currently underpinning our development strategy.”
The company plans to execute targeted 2D and 3D seismic surveying to map the lower geological sequences and establish priority targets for subsequent deep exploration drilling.
The deeper programme remains complementary to the company's core operations, with near-term priorities focused on commercialising established gas resources at Red Lake.
Following the announcement, the Jade Gas share price was down at $0.072.
The flagship TTCBM Project is located in Mongolia's South Gobi region, where the company recently submitted a Plan of Development covering a 502km2 production area.
