Jade Gas resumes drilling at Baruun Naran gas project in Mongolia
Jade Gas, an Australian energy exploration company, on April 2 announced the resumption of its drilling campaign at the Baruun Naran gas project located in Mongolia to complete the remaining five of eight prospecting wells.
The Baruun Naran gas project, situated adjacent and to the west of Jade's flagship TTCBM Red Lake project, is believed to possess high potential for gas-bearing coals. Jade said it is working in collaboration with Khangad Exploration, a subsidiary of the Hong Kong-listed Mongolian Mining Corporation, to develop this asset.
The company recently completed the drilling and reporting of the first three prospecting wells at Baruun Naran, with the BNG-3 well yielding a coal interval of 104.6 meters. Building upon this, drilling for the remaining five wells has commenced, with the first well, BNG-4, already underway with a target depth of 900 meters. It is projected that these five wells will be completed within the second quarter of 2024, Jade said.
Jade said that further success at Baruun Naran is expected to support the conversion of 2U prospective resources to 2C contingent resources in the existing permit, and provide an accelerated pathway to securing a long term production sharing agreement (PSA) over the permit area.
In February this year, Jade entered into a non-binding memorandum of understanding (MoU) with Mongolian Mining Corporation for the supply of gas and LNG from its TTCBM project. Jade aims to potentially supply two products to Mongolian Mining Corporation under this agreement: LNG for heavy vehicles and gas for electricity generation.
Furthermore, Jade holds two prospective CBM permits, Shivee Gobi and Eastern Gobi. Together the permits cover an area of over 18,000km2.