Jade Brings First Gas Production Wells Online

Jade Gas Holdings. ASX.JGH

Highlights

• Jade achieves critical milestone with Mongolia’s first ever horizontal CBM production wells brought online
  
  
• Gas flow rates expected to build progressively as the dewatering process continues
  
  
• Gas industry executive, Chris Whiteman appointed interim CEO
  
  
• Jade on path to realise its important aspiration of replacing diesel fuel with lower cost, cleaner gas fuel for transport fleets in the South Gobi region of Mongolia.

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Jade Gas Holdings Limited (ASX:JGH) (Jade or the Company) is pleased to announce the successful commencement of production from its first two Coal Bed Methane (CBM) gas production wells at the Red Lake gas field in the South Gobi region of Mongolia.

Production Commenced

Following recent commissioning activities and approval received from the regulator, Mineral Resources and Petroleum Authority of Mongolia (MRPAM) to commence operations, Jade has initiated the start of the pumping and dewatering process, effectively commencing first production from its two gas production wells at the Red Lake gas field.

This marks a critical milestone for the Company and the development of a gas industry in Mongolia with the first horizontal CBM gas production wells delivered in the country. Water is being pumped from coal seam IIIb from both horizontal wells RL-Hz-002 and RL-Hz-001 with initial gas breakthrough expected in the coming weeks. Gas flow rates are expected to build progressively as reservoir pressure decreases over time. The operating team will monitor dewatering and gas flow with results to be reported in due course.

Jade believes that there is outstanding gas potential as previously indicated, including significant visible gas observed in mud returns, and high percentage of CH4 (methane gas) composition (see ASX Announcements 24 March 2025, and 11 April 2025).

Jade is now on a clear pathway to capitalise on the significant unmet and growing gas demand initially in the South Gobi region. Multiple customer markets exist on the Company’s doorstep for cleaner energy, with gas as a replacement (in compressed or liquified state) for diesel fuel which serves the long haul trucking operations in the area, and as an input to power generation for the many large mining operations.

Jade is also continuing to progress negotiations with partners on these near-term commercialisation opportunities, with a focus on Liquified Natural Gas (LNG) and Compressed Natural Gas (CNG) capabilities to capture value from the early gas flow. Partnerships and other structures are under consideration with equipment manufacturers to assist Jade with faster access to customer markets and ultimately early revenue.

Figures 1 & 2: Photos showing CBM Gas Production Wells online at the Red Lake field

Pivot to Production

In preparation for the Company’s next phase, Jade will renew its executive and operational capabilities with a focus on building the team to execute on commercial opportunities and the development activities of the Red Lake gas field and associated infrastructure. As a result, the following changes have been made effective immediately:

Chris Whiteman – Transitions to Interim Chief Executive Officer
Chris Whiteman is an experienced energy sector executive with broad experience in corporate advisory, business development and commercial operations within the industry. Mr Whiteman joined Jade Gas at its inception in 2019, and has been a key member driving the growth of the Company from private to its listing on the ASX, and its rapid and successful development of the Company’s flagship Tavan Tolgoi CBM Project.

Mr Whiteman is currently Jade’s Head of Commercial. Mr Whiteman began his career in corporate advisory at Taylor Collison Limited and has also contributed expertise to Santos Ltd and TRU Energy. He holds aBachelor's Degree in Economics from the University of Adelaide, and is a non-executive director at Animoca Brands Corporation Limited and iCandy Interactive Limited.

Refer to Appendix A for the key Terms of Mr Whiteman’s engagement.

Dennis Morton – Steps down as Executive Chairman
Jade’s current Executive Chairman, Dennis Morton, has stepped down from the Board, having been instrumental in leading Jade Gas to initial production. Over the last two years, Mr Morton has led the Company’s project execution strategy overseeing the resource development and pilot production phase.

The Company sincerely thanks Dennis for his leadership during this critical period in the Company and wishes him well with his future endeavours.

Board Renewal
The Company is currently contemplating further changes to the Board composition to appoint experienced natural resources’ industry executives to compliment first gas production which it will announce in due course. These additions, including in-country appointments, will support the ~25 staff already in place in Mongolia as production ramps up.

Importantly, these will be designed to support Jade’s transition to gas production and to capitalise on the substantial commercial opportunity for the development of a gas industry in Mongolia. Jade has an aspiration to replace diesel transport fuel with lower cost, lower emission gas fuels for transport fleets in the South Gobi region of Mongolia.

Commenting on the gas production milestone, incoming Jade interim Chief Executive, Chris Whiteman, said:

“A great milestone has been reached now that the two horizontal wells are on-line. The team is to be commended on attaining this milestone in a relatively short timeframe since work on this high potential project commenced. We look forward to seeing the results as we continue to push ahead with early development plans and commercial progress.”

Outgoing Chairman, Dennis Morton, added:

“It has been a great privilege to work with the talented team at Jade Gas, both in Australia and Mongolia over the last few years. This is a special project and I am pleased to have been able to assist the teams to achieve this noteworthy event. I always believed in the potential of the project and now we are about to observe how it performs. I will continue to be a keen observer of progress and look forward to hearing of further success in the short term.”

Link to ASX Release:  https://bit.ly/4l2aJXN

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Media and Investor contact:

Elvis Jurcevic
Investor Relations
+61 408 268 271
[email protected]

Chris Whiteman
Interim Chief Executive
[email protected]