Jade Gas expands Mongolian footprint with two new coal bed methane permits
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Jade Gas has secured two highly-prospective and sizeable coal bed methane prospecting agreement permits in Mongolia.
Both the Shivee Gobi and Eastern Gobi permits are situated in known coal basins with significant coal deposits and cover a total of 18,000 km2 and a substantial increase on its initial footprint of 665km2 which covers the Company’s flagship TTCBM project.
“Securing 100% of two highly prospective coal bed methane prospecting agreements is a real coup for Jade and its shareholders,” Jade Gas (ASX:JGH) CEO Chris Jamieson said.
“The Shivee Gobi and Eastern Gobi permits are an excellent addition to our flagship TTCBM project, which allows us to expand our exploration and appraisal for natural gas from the coal seams that sit within the boundaries of these extensive permits.
“Our strategy has been to expand our footprint with permits that have the right address, and that address is near and next to existing coal mines and deposits, where we are confident there are coals at depth that have the potential to be gas bearing and producing,” Jamieson added.
The company says the granting of the prospecting agreements reflects strong intra-country relationships – and Mongolian Government regulator (MRPAM) confidence in Jade to deliver value-adding exploration and appraisal programs.
Supporting Mongolia’s energy transition is a key priority for Jade and it is a strategy of the company to develop gas projects so that in the long term it can provide a reliable supply option to the power sector in Mongolia.
Jade has negotiated minimal expenditure commitments on Shivee Gobi and Eastern Gobi over a three-year prospecting period.
The company plans to complete initial desk top study work at Shivee Gobi over the coming months to better assess its potential – ahead of technical studies, drilling, coal sampling and gas testing.
The total expenditure for the three-year period is estimated at around US$110k.
At Eastern Gobi, initial desk top study work will be completed in the coming months, with total expenditure estimated at around US$160k.
This article was developed in collaboration with Jade Gas Holdings, a Stockhead advertiser at the time of publishing.
This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.