Jade has delivered a substantial maiden gross unrisked 2C contingent resources of 246 billion cubic feet and it’s working on expanding resources across a defined 40-kilometre gas field opportunity in the south Gobi region of Mongolia.
Red Lake-15 is the final vertical well in the pilot project drilling program. The well was spudded on 22 August 2023 and reached total depth (TD) of 563.9 metres on 5 September 2023.
The well intersected 25 metres of gassy coal in target seam 0, between 524 metres and 551 metres, with 32 coal core samples recovered for gas desorption measurement and compositional sampling at Jade’s on-site laboratory.
The well has been logged and a drill stem test was undertaken.
The well will be left suspended awaiting drilling of the horizontal well program.
The four vertical production wells required for the upcoming pilot production program (Red Lake-5, 7, 11, and 15) are now completed.
Each horizontal well will have a lateral section of around one kilometre which is designed to provide a much larger exposure to the gassy coal intersection when compared with a vertical well.
The pilot production program is expected to take between three to six months, after which, commensurate with commercial discussions, the company will advance to a potential reserve booking.
Jade’s drilling contractor, Major Drilling, has mobilised their Schramm TXD 200 drilling rig which is currently enroute to the Red Lake area after departing a port in Chile, South America in August.
The TXD 200 is a fit for purpose oil and gas rig with directional capabilities due to its 200,000 pound-force capacity, and will be the first rig of its type to be used in Mongolia. The rig has the ability to effectively drill greater than 1000 metres lateral wells.
Jade expects to spud the first well of the Horizontal Pilot Production program in early November. The campaign will target the proven gas containing Seams 0 and III to connect with Jade’s previously drilled vertical production wells (Red Lake-5, 7, 11, and 15).
Well planning and drilling preparations are at an advanced stage, incorporating expert well design and engineering consultants in Brisbane, with efforts currently focussed on lease preparation, production skid upgrades (for handling water and gas brought to surface once the wells are online), and winterisation of rig and ancillary equipment necessary for the expected cold conditions during November and December.
Jade Executive Director Joe Burke commented on the operations update: “The company is pleased to confirm a further gassy coal intersection from the Red Lake area which moves us closer to our pilot production program due to commence In November. Jade is committed to delivering a cleaner source of energy in Mongolia and these results continue to reinforce the scale potential that underpins the Project. This ultimately is driving our commercial discussions with potential customers where we are seeing strong demand to secure our planned clean and robust gas supply.”
Jade Gas will ultimately support Mongolia’s energy transition focused on key outcomes, including: improving Mongolia’s energy independence, supporting the country’s significant future energy demand growth, decarbonising the economy by improving the energy mix with cleaner fuel sources, and ensuring the environmental and health benefits for the people and country of Mongolia.
Image courtesy Jade Gas
