Jade Gas Holdings Drills Gassy Coal At BNG Project, Mongolia

Jade Gas Holdings Ltd (ASX:JGH) shares rose 5% after delivering strong gas results from drilling at the Baruun Naran coal field (BNG Project) in Mongolia.

BNG Project is adjacent to Jade’s flagship project at the Tavantolgoi basin (TTCBM Project) in the South Gobi region.

Strong gas results

Jade’s drilling campaign at BNG returned strong gas results including:

  • 45.32m (metres) of gassy coal intersected (BNG-4);
  • 13.37m of gassy coal intersected (BNG-5);
  • 27.25m of gassy coal intersected (BNG-6); and
  • 49.85m of gassy coal intersected (BNG-7).

Complements TTCBM Project

Jade believes the BNG Project has significant potential for gas-bearing coals and is working with joint-venture partner Mongolian Mining Corporation LLC (HKEX:975) to develop a commercial pathway for gas.

Seven wells were successfully drilled at BNG with standout gassy coal intersections of 49.85m (BNG-7) and 45.32m (BNG-4).

Results from BNG complement the adjacent TTCBM Project, where Jade is focused on accelerating a pathway to gas production at the Red Lake field.

Primary focus on Red Lake

Jade Executive Chairman Dennis Morton said: “The high gas results at BNG give us a potential second key energy project in Mongolia’s South Gobi region, which, importantly, has a large customer market attached to it through our partnership with MMC.

“Jade’s primary focus remains on accelerating commercial gas production at the adjacent Red Lake area in the short term as we develop the BNG resource in parallel with MMC which will have significant value in use for their business.”

 

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