Highlights
• Sustained gas flow maintained from both gas production wells during the month
• Flow rates continuing to increase ahead of expectations
• Gas to be utilised to power planned well site operations
• Plan for Development for Operations (PDO) near completion
Jade Gas Holdings Limited (Jade or the Company) is pleased to provide the monthly operations
update on gas production activities at the Red Lake Gas Field in the South Gobi region of Mongolia.
Operations Summary - Gas Production from Both Horizontal Wells
During the month of August, both horizontal wells in the Red Lake field (RL-Hz-01 and RL-Hz-02) developed
pressure in the casing which lead to the commencement of continuous gas flowing from the wells. The
pump speed to remove water from the well and the casing pressure are being managed to further reduce
the fluid level within the horizontal wells. As the pressure drawdown moves further into the coal seam Jade
expects to see the gas rate further increase over the coming months. Gas fired power generators are to be
installed to provide more stability in operations. Minor downtime associated with the reliability of the local
power grid was experienced during the month.
Commenting on the progress, Jade Non-Executive Director, Dr Ian Wang, said:
“Such a great milestone for the company to have continuous gas flow from our first two horizontal wells
in such a short period of time. With careful management we expect to see commercial rates very soon,
With these rates, we are building confidence in the volume and deliverability of gas that we can start to
sell – and the buyers are seeing this also. Another key step in the project de-risking journey.”
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
• 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.
• Gas Desorption Indicators: Critical gas desorption pressure has been reached in the near wellbore
area of the wells and continuous gas flow has commenced. As the pressure decreases further into the
coal seam we expect to see gas rates build over the coming months.
3. Well and Drilling Activities
• RL001-3b-Hz-01 was fully operational during the month of August with 98.6% uptime
• RL001-3b-Hz-02 was fully operational during the month of August with 99.6% uptime
• Minor downtime experienced due to interruptions to power supply. Additional power supply
optionality to be implemented with the installation of gas-powered generators.
4. Forward Outlook
a. Upcoming Activities: The gas flow rates from both wells are expected to continue to increase.
Commercial flow rate will be reached at which time the economic assessment of forecast well
performance can be completed which will inform the finalisation of the full filed development
(Plan for Development and Operations).
b. Additional Seismic: The technical team is assessing the need for additional 2D or 3D sesimic
surveys to be conducted over part of the Red Lake field during 2H 2025.
Authorised for release on behalf of the Board by Joseph Burke, Executive Director.