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- Following strong early results, Jade Gas (JGH) expands the drilling program at the Tavantolgoi XXXIII Coal Bed Methane gas project in Mongolia
- Drilling is targeting natural gas from three coal seams across prospective areas of the permit and has returned high gas content and multiple intersections of thick coals
- The program will now include Red Lake-7 which will be the second production well in the extended pilot production testing phase
- The extended production testing is designed to gain information on well performance and deliverability to ultimately support assessment of commercial development options
- Jade Gas shares are trading grey at 5.1 cents at 2:48 pm AEST
Following strong early results, Jade Gas (JGH) has expanded the drilling program at the Tavantolgoi XXXIII Coal Bed Methane gas project in Mongolia.
Jade operates and manages the project through its subsidiary Methane Gas Resource, which holds 60 per cent of the project through a joint venture agreement with Erdenes Methane, the representative company of the Mongolian Government.
Drilling is targeting natural gas from three coal seams across prospective areas of the permit, which has an independently assessed Gross Prospective Resource of 1.0 trillion cubic feet of gas.
Early results from the Red Lake well returned high gas content and multiple intersections of thick coals.
As such, the company has decided to expand its 2022 drilling program to include Red Lake-7 which will be the second production well in the extended and pilot production testing phase.
It comes as Red Lake-5 is being re-drilled and will be cased at 680 metres, cored and drill stem tested, with the section from 680 to 715 metres to be left-open-hole for subsequent completion and extended production testing.
This work is anticipated to take about six weeks to complete, meanwhile, plans are being progressed to drill Red Lake-7 in the middle of the second half of this year, which will enable the well to be production tested with Red Lake-5.
The extended production testing is designed to gain information on well performance and deliverability to ultimately support assessment of commercial development options.
The company has engaged well engineering and project management consultants, inGauge Energy, to undertake design work for pilot vertical and horizontal wells for the project.
At the same time, Vista-1, the first of three exploration wells, is being drilled after it spudded on August 1.
It is expected to take four weeks to drill and will be extensively cored through the seams of interest to an expected depth of 570 metres.
It marks the start of the exploration component of the 2022 drilling program and drilling of the Brownhill-1 and Steppe-1 wells will follow.
Jade Gas shares were trading grey at 5.1 cents at 2:48 pm AEST.
