Jade Gas (ASX: JGH) is progressing rapidly with the development of its Red Lake gas field in Mongolia’s South Gobi region. The company has successfully drilled a second production well, confirming its belief that the field can become a world-class gas producer. The Red Lake field is situated in the Tavan Tolgoi Basin, an area with considerable demand for electricity, fuel, and reliable energy to support renewable energy sources.
Executive Chair Dennis Morton stated that the well’s high gas readings support the company’s goal of quickly commercializing the gas. Jade Gas intends to finalize an agreement with a compressed natural gas (CNG) equipment manufacturer to facilitate the commercialization of gas from the initial wells. The modular and scalable plan also includes investigating shorter-term, lower-capital expenditure opportunities in the form of CNG, which could displace diesel in coal haulage trucks, fulfilling a need for cleaner and more secure fuel.
