Jade Gas Charges Ahead: First-Ever CBM Gas Production Wells Completed in Mongolia

Key Highlights:

• Jade completes Mongolia’s first horizontal CBM production wells at Red Lake field.
• Dewatering and pumping to commence, with initial gas flows expected in June 2025.
• Strategic focus on LNG and CNG opportunities for diesel replacement and power generation in the South Gobi.
  
   

Jade Gas Holdings Ltd (ASX: JGH) has marked a pivotal milestone in Mongolia’s energy transition, announcing the successful completion of the country’s first-ever horizontal coal bed methane (CBM) gas production wells at its flagship Red Lake field. The company is poised to initiate the dewatering process in the coming weeks, with both wells—RL-Hz-001 and RL-Hz-002—expected to deliver initial gas flows by early June 2025.

This breakthrough positions Jade at the forefront of Mongolia’s emerging gas sector, targeting the growing demand for diesel alternatives and power generation in the South Gobi region. With the completion of these horizontal wells, Jade has set the foundation for a potentially transformative shift in the country’s energy landscape, reducing reliance on imported fuels and coal-fired power.

Jade’s executive team, led by Chairman Dennis Morton, remains optimistic about the next phase. “We are on a direct path to first gas production, unlocking Mongolia’s substantial gas resources. The focus now is on dewatering, optimizing operations, and progressing partnerships to capture early commercial value,” Morton said.

Jade’s strategy extends beyond production, with commercial discussions underway to supply Liquefied Natural Gas (LNG) and Compressed Natural Gas (CNG) to long-haul trucking operations and power plants in the region. Early revenue opportunities are being explored through partnerships with equipment manufacturers and customers in the energy and transport sectors.

The Red Lake development forms part of Jade’s broader portfolio, including the Tavantolgoi CBM Project (with a 2C Gross Unrisked Contingent Resource of 246 Bcf), a joint venture with Mongolia Mining Corporation for the Baruun Naran coal mine, and two prospective CBM permits covering over 18,000 km². The company’s vision is clear: to provide a reliable, cleaner energy source for Mongolia, supporting decarbonization efforts while ensuring energy security.

With a market cap of $55.67 million and 1.69 billion ordinary shares, Jade Gas shares surged 17.86% to 0.033 AUD on 26 May 2025, reflecting investor optimism on the back of this major milestone. As the dewatering process unfolds, all eyes will be on Jade’s gas flows—and the commercial partnerships that follow.