Highlights
- Gas composition analysis confirms exceptionally high methane content (>97%) with very low carbon dioxide levels (<1%)
- Results demonstrate high quality gas profile which supports the Company’s primary high-margin LNG customer market opportunity
- The outcome also provides Jade with optionality for the potential to supply additional markets as a key chemical feedstock.
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Jade Gas Holdings Ltd (ASX:JGH) (Jade or the Company) is pleased to announce that detailed gas composition analysis from horizontal production wells at the Red Lake gasfield has confirmed very high levels of methane and minimal carbon dioxide at its flagship project in South Gobi region, Mongolia.
Extremely High Methane Content and Minimal CO2
To support broader commercial initiatives in train, including the opportunity to displace diesel at Jade’s own site operations, the Company undertook gas composition tests on the gas produced from the two producing lateral wells. Gas composition analysis returned:
The results are highly encouraging from both technical and commercial perspectives. This high quality gas result supports recoverable resource estimates and market optionality for the supply of Liquefied Natural Gas (LNG) and Compressed Natural Gas (CNG), gas fired power generation, as well as the potential to supply another high-margin operation.
Methane of this high purity is highly desirable as a key chemical feedstock. Although LNG/CNG customer markets remain the Company’s primary focus, methane is a fundamental building block in the chemical industry for synthesizing methanol and hydrogen processing. The low inert and carbon dioxide fractions also support improved volumetric efficiency, higher energy density, and reduced compression and treatment requirements. Jade will consider these additional markets as it continues partner discussions and its economic study.
The findings will be integrated into Jade’s ongoing subsurface modelling and production planning, part of the Company’s broader field development strategy aimed at establishing a long-term, cost-efficient supply of high-quality gas from its Mongolian asset base.
Commenting on the Gas Composition results, Managing Director, Chris Newport, said:
“We are pleased with these excellent gas composition results from the horizontal wells at our Red Lake gasfield, which confirm the high methane purity of our gas resource. This result broadens our range of commercial options, improves project economics and validates our exploration strategy as we move closer to commercialisation.”
Link to ASX release: https://bit.ly/3KPHWJr
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Contact details:
Chris Newport
Managing Director
[email protected]
Elvis Jurcevic
Investor Relations
0408 268 271
[email protected]