- Two drill rigs are now operational at Jade Gas ‘(JGH) coal bed methane gas project in Mongolia as the company progresses its six-well program
- The program is targeting natural gas from three coal seams of interest across the central core area of the permit
- Following coring of the Red Lake-one well, the Red Lake three and four wells have since been spudded
- Evaluation of the core from the wells, as well as results from three drill stem tests will be used to build an understanding of the deliverability potential across the project
- At the end of trade, shares were trading 9.5 per cent higher at 8.1 cents
Two drill rigs are now operational at Jade Gas’ (JGH) coal bed methane gas project in Mongolia as the company progresses its six-well program.
The project is located over the Production Sharing Agreement area of the Tavantolgoi XXXIII unconventional oil basin.
It is operated and managed by the company’s subsidiary, Methane Gas Resource, which through a joint venture has partnered with Mongolian Government representative, Erdenes Methane to explore, develop and produce gas at the project.
The six well program is targeting natural gas from three coal seams of interest across the central core area of the permit, which has an independently assessed Prospective Resource of 1.0 trillion cubic feet of gas.
Following coring of the Red Lake-one well, the Red Lake three and four wells have since been spudded.
Red Lake one reportedly reached a total depth of 1,012 metres, with all three coal seams of interest intersected and cored between 730 metres and 970 metres depth.
According to the company, the coring program delivered a total of 145 metres of coal, 58 metres of which had gas coming off the recovered core.
Drilling is progressing at Red Lake three to a depth of 457 metres with the coal seams of interest expected to be hit at between 600 and 700 metres down before reaching total depth at 730 metres. The company anticipates this drilling will take four weeks.
Jade Gas decided to drill Red Lake four before Red Lake two, to provide the best chance for continuous drilling over the coming months due to casing delivery delays related to Chinese border restrictions ahead of the Winter Olympics.
Three Drill Stem Tests were also conducted over the main seams of interest in Red Lake one with results currently undergoing analysis, along with results from the Borehole Magnetic Resonance logging tool.
The company plans to use these results, in combination with the outcomes from the extensive evaluation planned in each of the Red Lake two, three and four wells to build an understanding of the deliverability potential across the central core area of the project.
At the end of trade, shares were trading 9.5 per cent higher at 8.1 cents.