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- Approval received for appraisal report from Mongolian regulator
- Formal process of reserve booking and registration now approved
- Another ket step towards application for gas production licence application
- Positive commercial discussions continue
Jade Gas Holdings (ASX:JGH) has achieved another key milestone on its path to commercialising the TTCBM gas project in Mongolia.
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The Australian junior has now received approval for its appraisal report for the TTCBM project from the Mineral Resources and Petroleum Authority of Mongolia (MRPAM), completing the key appraisal phase and establishing the commerciality of the discovery.
Jade’s CEO and managing director, Chris Newport, said the successful appraisal provides a foundation for the company to transition to development, demonstrating a clear pathway to a significant gas operation.
“Approval from the Mongolian regulator provides Jade with a significant endorsement and further de-risks the TTCBM project, at a critical stage as we focus on transitioning to development,” he said.
“The appraisal phase has delivered a large body of work that effectively gives us a deep understanding of the technical and commercial value of the project.
“We now focus on the next steps toward securing a gas production licence, confirming a gas reserve booking, and submission of the Plan for Development of Operations that will ultimately deliver Mongolia’s first significant gas operation.”
With regulatory approval of the appraisal program secured, the company has taken a first step toward securing a long-term production license for the project, with the next stage being reserve booking, which will validate and register the maiden gas reserves under Mongolia’s mineral and petroleum reporting standards.
The proposed reserve booking relates to the minimum economic project analysis, which covers only a minor portion of the company’s project area of 4.2 sq. km and evaluates production from only one coal seam (out of three to six known gassy seams).
Upon acknowledgment of the reserve booking by the MRC, Jade will submit its Plan for Development of Operations (PDO) for the coal bed methane project.
The PDO will serve as the formal development blueprint, defining technical scope, infrastructure design, production forecasts, and environmental management commitments.
Phase one of the development outlines a drilling campaign of up to 175 wells and is envisaged as a moderate‐scale, modular development focused on supplying LNG to the local transport network, with optional supply to mining operations and industrial power users. The broader field development further contemplates ~800 wells and a potential project life exceeding 30 years.
JGH is down -1.85% to 5.3¢. Mkt cap $103.1M.
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