ASX-listed Jade Gas Holdings has commenced extended testing of the Red Lake-5 and Red Lake-7 wells in the Red Lake area of its TTCBM Project permit, in the south Gobi region of Mongolia.
Jade Managing Director and CEO Chris Jamieson said the commencement of the extended testing of the wells is a crucial phase in terms of data gathering for the company’s pilot production program later in the year.
“It was pleasing to see a flare generated from gas pressure build up in Red Lake-5 yesterday, and while the flow was brief and un-metered, it was an encouraging early sign.
“Red Lake-5 and Red Lake-7 will provide key information regarding permeability of the coals and water quality that will assist in the design of our horizontal pilot production wells, the laterals of which are expected to be around one kilometre in length.
“Our partners and stakeholders should see this as another step closer to Jade delivering on its strategy for a new secure and robust source of critical energy for Mongolia.”
Extended testing operations on the Red Lake-5 and -7 wells commenced late last week, with the wells currently stabilising and an un-metered gas flare from the annulus of Red Lake-5 generated.
The objectives for the extended test are to:
- confirm stabilised inflow rates to assist in predicting performance of lateral wells planned for Q3 2023;
- obtain water samples from the coal seams to ascertain water quality and management requirements; and
- liberate gas from the coal seams to obtain a flowing gas sample for compositional analysis, which is expected to support the high methane contents observed from the coal samples at surface.
