Jade (ASX:JGH) sinks first well at Red Lake 7
November 25, 2022Jade Gas is set to test the first of two planned production wells in its unrisked gross contingent resources within the prolific Red Lake Area in Mongolia.
The first well will be subject to extended testing in January, with the second deeper well (Red Lake-5) expected to come online for testing soon after.
The Company targets natural gas from three coal seams of interest – IV, III and 0 – across the prospective areas within its TTCBM Project Permit.
Permit areas showing drilling across the TTCBM and BNG Projects
The Company said testing would provide critical data for the design of Pilot Production wells, also aimed to commence in CY2023.
“The completion of Red Lake-7 was ahead of schedule and budget, and now we will look to complete the deeper Red Lake-5 well over the coming weeks,” Managing Director and CEO Chris Jamieson said.
“These two wells form the core of our Extended Production Test early next year, the information from which will assist in the design of our Pilot Production wells.
“This is an exciting time for the company and its shareholders as we move rapidly toward proving that the Red Lake field within our flagship TTCBM permit can produce commercial quantities of gas.
“We also look forward to expanding our Contingent Resources booking over the prospective areas within our TTCBM permit with the drilling of further wells around the Vista-1 and Brownhill-1 exploration wells next year.”
Price Action
The Company’s ASX-listed shares are 4.9c at Market Open.
Next Steps
Red Lake-5 is expected to be completed by the end of December 2022.
About the Drilling Campaign
Red Lake-7 was drilled and completed over nineteen days to a total depth of 501 metres, with gassy coal seams recovered and undergoing desorption testing. Red Lake-7 is shallower than the Red Lake-5 well, expected to reach TD at just over 700 metres. The Red Lake-7 wellhead was successfully installed, with the well now complete and ready for Extended Production Testing.
Cross Section of the Red Lake Filed showing the Red Lake-5 and -7 well
About Jade Gas
Jade Gas Holdings Limited is a gas exploration company focused on Mongolia’s coal bed methane (CBM) potential. Jade’s flagship project is the Coal Bed Methane gas project over the Production Sharing Agreement (PSA) area of Tavantolgoi XXXIII unconventional oil basin (TTCBM Project). Jade will operate and manage the project through its subsidiary Methane Gas Resource LLC (MGR), a joint venture (JV) company partnering with Erdenes Methane LLC (EM), the representative of the Mongolian Government. The JV was formed to explore, develop and produce gas from the TTCBM Project permit (Jade 60%, Erdenes Methane LLC 40%), located in the South Gobi region of Mongolia.
Fundamental Data
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