Jade Gas is nearing the mid-way point at its six well drilling program at the coal bed methane gas project in the Tavan Tolgoi XXXIII unconventional oil basin in Mongolia (TTCBM Project).

Two rigs are now operational and the second and third wells – Red Lake-3 and Red Lake-4 – have spudded.

The company is targeting three coal seams of interest (IV, III and 0) at depths of between 600-900m across the central core area of the permit – which has an independently assessed prospective resource of 1.0 Tcf of gas.

Red Lake-3 expected to reach 730m

Red Lake-3 was spudded on 21 January 2022 and is currently drilling ahead at a depth of 457 metres.

The coal seams of interest are expected to be intersected at depths of between 600 to 700 metres, with total depth expected at around 730 metres.

And Jade Gas (ASX:JGH) expects it will take around four weeks to drill.

Drilling ahead of Winter Olympics

The well was spudded on 31 January 2022 and will be cored to a depth of around 1,000 metres with the coal seams of interest are expected to be intersected at around 700 to 900 metres depth.

The company decided to drill the deeper Red Lake-4 well ahead of Red Lake-2 to provide the best chance for continuous drilling over the coming months due to casing delivery delays related to Chinese border restrictions ahead of the Winter Olympics.

Jade Gas
Pic: Permit area showing locations of Red Lake-1, Red Lake-3 and Red Lake-4

Red Lake-1 test work ongoing

Red Lake-1 reached a total depth of 1,012 metres, with all the three coal seams of interest intersected and cored between 730 metres and 970 metres depth.

The extensive coring program delivered a total of 145 metres of coal, 58 metres of which had gas coming off the recovered core.

The complete evaluation program is underway and includes:

  • Gas desorption, to assess gas content;
  • Permeability testing, to identify the ease with which fluids flow through the coals; and
  • Isotherm analysis, to assess gas saturation.




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.