- Jade Gas (JGH) secures a prospecting agreement permit over the Baruun Naran coal field with joint venture partner Khangad Exploration, expanding its permit footprint in Mongolia
- Jade will advance the agreement through its Mongolian subsidiary, Baruun Naran Gas, holding a 66 per cent interest with Khangad holding 34 per cent
- The company believes the project has strong potential for gas-bearing coals and could support commercial gas production
- Further, the project provides the company with a broader portfolio for exploration and appraisal potential and expands Jade’s network in-country
- Shares in Jade Gas are up 1.82 per cent and trading at 5.5 cents at 10:50 am AEST
Jade Gas (JGH) has secured a prospecting agreement permit over the Baruun Naran coal field with joint venture partner Khangad Exploration, expanding its permit footprint in Mongolia.
The Baruun Naran coal field is adjacent and to the west of Jade’s flagship TTCBM project.
Jade will advance the agreement through its Mongolian subsidiary Baruun Naran Gas, holding a 66 per cent interest with Khangad holding 34 per cent.
Under the agreement, Jade will commit US$160,000 (A$231,406) to the permit over three years, which will include the drilling of a minimum of two core holes within the first two years.
The company said it believed the project had strong potential for gas-bearing coals and, with the addition of Jade’s permit portfolio consistent with the strategy of targeting a meaningful footprint, could ultimately support commercial gas production.
“We are delighted to have secured a prospecting agreement over the prospective Baruun Naran coal field with our joint venture partner Khangad,” Jade Managing Director and CEO Chris Jamieson said.
“It is also pleasing that MRPAM, the Mineral Resources and Petroleum Authority of Mongolia, continues to back Jade and its CBM exploration capability and experience with the granting of this agreement.
“Jade has delivered successful results at the TTCBM project, which makes BNG a logical expansion of our strategic footprint given its proximity to Tavan Tolgoi.
“We look forward to leveraging our results to date, along with early-stage work at the BNG project, to deliver on our ultimate aim of becoming a meaningful gas producer in Mongolia.”
The project provides the company with a broader portfolio for exploration and appraisal potential and expands Jade’s network in-country.
Shares in Jade Gas were up 1.82 per cent and trading at 5.5 cents at 10:50 am AEST.