Jade Gas Completes Second Production Test Well

? Second of two Extended Production Test wells (Red Lake-5) completed
? Extended Production Testing planned for Red Lake-5 and Red Lake-7 in early CY2023
? Exploration drilling in the Western zone at Baruun Naran successfully completed, with 26 metres of gassy coal intersected at BNG-2
? Jade’s total gas strike now expanded to nearly 45 kilometres
? Production skids, for use in upstream production, en route to Mongolia
? Results to date expected to add to Jade’s current gross unrisked 2C Contingent Resources of 246Bcf1

Jade Gas Holdings is pleased to advise that the second of two Extended Production Test (EPT) wells, Red Lake-5, has completed and further exploration drilling success realised at Baruun Naran (BNG-2) to the west of the TTCBM permit.
Jade is targeting natural gas from three coal seams of interest – IV, III and 0 – across the prospective areas within its TTCBM Project permit, with unrisked Gross Contingent Resources recently booked for the Red Lake area within the permit of 1C: 118 Bcf, 2C: 246 Bcf and 3C: 305 Bcf1 of gas.

Commenting on the completion of both EPT wells, Jade Managing Director and CEO, Chris Jamieson, said:
“Jade has had an excellent year having successfully drilled 14 wells, the results from which exceeded our expectations, with four of the wells underpinning our maiden Contingent Resources booking announced in August. Along with this, we have had exploration drilling success that will likely expand our Contingent Resources for the area.

With the completion of Red Lake-5 and Red Lake-7, we are now set to undertake extended production tests which will shape the drilling and testing of four Pilot Production wells focused on proving commercial gas flows.”

Drilling Campaign
Red Lake-5 was drilled to a total depth of 687 metres, with 36 metres of coal intersected in the target gas seams. Red Lake-5 is the deeper of the two extended production testing wells, with the shallower Red Lake7 well completed in November. Red Lake-5 will test the 25 metre thick seam 0 and Red Lake-7 will test the 17 metre thick seam III.

The BNG-2 well was successfully drilled to a measured depth of 592 metres, with 26 metres of gassy coal core recovered, between 471 to 530 metres. These coals are currently undergoing desorption testing. The well demonstrates additional gas bearing seams to those evaluated in BNG-1. A DST was successfully conducted over the intervals of interest and, together with the results from BNG-1, will be used for the conversion of 2U Prospective Resources to 2C Contingent Resources in the BNG permit. The BNG-2 well is located 4 kilometres from BNG-1, which continues to expand the overall gas strike from west to east.

Jade safely drilled 14 wells over the last twelve months, some of which contributed to our maiden Contingent Resources booking, as well as delivering gas strike of nearly 45 kilometres across the TTCBM and BNG permits.

Our first EPT of Red Lake-5 and Red Lake-7 will take place early in 2023, the data from which will be used to design our Pilot Production test wells that are expected to be drilled around the middle of next year. This is an exciting time for the Company as it moves towards proving commercial gas flows from the sizeable Red Lake Field.

Authorised for release on behalf of the Board by Chris Jamieson, Managing Director and CEO.