Highlights
? Jade resumes drilling remaining five of eight wells at Baruun Naran Gas Project
? First three wells successfully intersected gassy coal with BNG-3 recording Jade’s second
thickest interval to date of 104.6 metres gassy coal
? Further success at BNG will support an upgrade to 2C Contingent Resources in the
existing BNG permit, and importantly provide an accelerated pathway to securing a long
term Production Sharing Agreement (PSA) over the permit area
Jade Gas Holdings Limited confirms that it is continuing a drilling campaign
to complete the remaining five of eight prospecting wells at the Baruun Naran area (BNG), adjacent to the
TTCBM Red Lake area.
BNG Drilling Program
Jade’s BNG Project is located immediately adjacent and to the west of Jade’s flagship TTCBM Red Lake
Project. The Company believes the BNG Project has high potential for gas bearing coals and is working with
joint-venture partner Khangad Exploration LLC, a subsidiary of Hong Kong listed Mongolian Mining
Corporation LLC (HKEX:975).
The first three of eight prospecting wells at BNG were successfully drilled and reported (see ASX
Announcement 18 December 2023), with the BNG-3 well recording the second thickest gassy coal interval
to date of 104.6 metres.
Drilling for the remaining five wells has commenced with the first well BNG-4 spudded with a target depth
of 900 metres (see Figure 1 for location of the planned wells). It is planned that the five wells will be
completed within Q2 2024.
Further success at BNG is expected to support the conversion of 2U Prospective Resources to 2C Contingent
Resources in the existing BNG permit (see Table 1), and importantly provide an accelerated pathway to
securing a long term Production Sharing Agreement (PSA) over the permit area. Ultimately, this will provide
Jade with two significant energy projects in the South Gobi region, highly needed at a time with clean energy
demand growing rapidly from multiple customer markets.
Commenting on the BNG drilling program, Jade Executive Chairman, Dennis Morton, said:
“The resumption of drilling at the BNG Project kicks off our 2024 field activity program after a pause for
the winter. The BNG Project is growing in importance as a solution for the energy shortage in the area.
Our partner, MMC – a very large energy user, is eager to see this field developed as fast as possible to
enable it to reduce reliance on imported diesel for its operations. With a busy drilling schedule over the
next few months, we hope to expedite the appraisal phase and move the JV one step closer to production”
Authorised for release on behalf of the Board by Joseph Burke, Executive Director.