Jade Gas (ASX:JGH) initiates gas production well program at Red Lake Gas Project

Jade Gas Holdings Limited (ASX:JGH) has commenced field operations for the initial four gas production well program at the Red Lake Gas Project in Mongolia. The program is designed to establish gas flow rates leading to commercial gas production and first revenue generation. The company aims to take advantage of high local gas demand, particularly for Liquified Natural Gas (LNG) sales to replace diesel consumption in the South Gobi region. The initial four gas production well program will be followed by a fully funded twenty gas production wells aimed at generating a significant income stream.

Executive Chairman, Dennis Morton, comments on production well program

The pathway to gas production is now largely dependent on the drilling, completion, and establishment of gas production from the four planned gas production wells in Red Lake Gas Field. Establishment of commercial gas production will enable the company to capitalize on the strong gas demand on our doorstep. Jade has a significant opportunity to supply cleaner energy LNG as a diesel replacement in the South Gobi region. Beyond the initial four gas production wells, the company is also working on the next twenty production well program as a part of our partnership with DWK in order to accelerate larger scale gas production.

Summary of Jade Gas (ASX:JGH) announcement

Jade Gas Holdings Limited (ASX:JGH) has initiated the first production well program at the Red Lake Gas Project, aiming to establish commercial gas production and LNG sales in the South Gobi region. The company's partnership with DWK for the development of gas resources demonstrates confidence in replicating the success of gas well development in the Qinshui Basin, China. The fully funded twenty gas production wells program, subject to regulator approval, reflects the company's ambitions to generate a significant income stream. Jade's strategy to develop gas projects in Mongolia aligns with its goal to provide an economically viable and reliable supply option to the power and transport sectors, supporting Mongolia's energy transition and decarbonizing the economy with cleaner fuel sources.