Highlights
锟� Uninterrupted gas flow continues from both horizontal production wells
锟� Total gas production increased 22% month-on-month
锟� Aggregate flow rate at the end of the month of 1,695m3 with over 215,000m3 gas
produced to date
锟� The appraisal phase of Red Lake is nearing completion and will support the project锟絪
maiden gas reserves
锟� Following the booking of the Company锟絪 maiden gas reserves, submissions of the Plan
for Development of Operations (PDO) and production license are expected to follow
Jade Gas Holdings Limited (Jade or the Company) is pleased to provide its monthly operations
update on gas production activities at the Red Lake Gas Field in the South Gobi region of Mongolia.
Operations Summary
During the month of January, both horizontal wells in the Red Lake field (RL-Hz-01 and RL-Hz-02) continued
to produce gas and water in line with Company expectations.
Gas flow rates continued to build throughout the month following the unplanned interruption to production
operations during December relating to the upgrade of power infrastructure (see ASX Announcement dated
22 December 2025). Well Hz-01 continues to produce at continually increasing rates whilst the production
team continues to optimise well Hz-02 to increase flow rates.
Flow rate at the end of the month across both wells was 1,695m3
, with over 215,000m3 gas produced to
date.
Ongoing observation of production behaviour continues to inform longer term planning with the early
priority of completion of the appraisal phase which will allow the Company to obtain its maiden gas reserves
report. Subsequent to obtaining the maiden reserves report the PDO will be submitted for approval and an
Economic Study will be released, followed by a submission for a Production License to the relevant
Mongolian authorities.
Commenting on the progress this month, Jade MD and CEO Chris Newport, said:
锟絁ade is in entering a positive period where combined gas flow rates continue to build to support completion of
the appraisal program and reserve report. Following this, we will be in a position to submit our field
development plan which will ultimately drive the submission for a production licence.
Beyond this, we are focused on leveraging the success of our first production wells into discussions across our
commercial initiatives.锟�
Water produced from both wells is trucked to the nearby Tavan Tolgoi coal mine (operated by Erdenes Tavan
Tolgoi) for beneficial use in their operations.
2. Reservoir and Technical Progress
锟� Operating Philosophy: The wells are being operated in line with best-practice operations for lateral
wells in the Qinshui Basin in China, the analogue field for Red Lake.
3. Well and Drilling Activities
锟� RL001-3b-Hz-01 was fully operational during the month of January with 100% uptime.
锟� RL001-3b-Hz-02 was fully operational during the month of January with 100% uptime.
4. Forward Outlook
a. Upcoming Activities: Pumping operations will continue to remove water in order to maintain the
lowest possible flowing bottom-hole pressure. Once commercial flow rates are reached the appraisal
plan and resource and reserve estimate for the Mongolian regulator can be completed which will
inform the finalisation of the full field development (Plan for Development and Operations).
b. Additional Studies: The mine operator锟絪 (Erdenes Tavan Tolgoi JSC) corehole program in the vicinity
of the project has commenced, and core hole data analysis is underway with data being shared under
the Co-operation Agreement with ETT. This data is expected to assist the Company in both improving
its understanding of seam correlation and in assessing the requirement for, and/or design of, a
seismic acquisition program in 2026.
Authorised for release by the Board of Jade Gas Holdings Ltd.