Jade Gas Holdings raises capital

Jade Gas Holdings (ASX:JGH) has raised A$3.63 million through a placement at 3.3 cents per share. The funds, from professional and sophisticated investors, will boost Jade's gas production strategy in the Red Lake gas field.

Strategic outlook for gas production

Jade Gas Holdings has raised A$3.63 million to support its strategic gas production initiatives at the Red Lake gas field. The placement involved issuing 110 million shares at a discounted rate. The funds will aid in establishing commercial gas production to meet local LNG demand, reduce diesel consumption, and enhance gas revenue. Jade's long-term goals include supporting Mongolia's energy needs, reducing reliance on imports, and improving environmental conditions through cleaner fuel sources. The company is also working on completing its initial production well program and maintaining a strong funding position with its strategic shareholder.

Executive commentary on capital raising

Jade is excited to have secured these funds which will allow us to accelerate our gas production strategy in the Red Lake gas field. This is a critical step as we look to meet the high local demand for LNG in the South Gobi region and transition towards resource development and first gas production.