Jade Gas Holdings
Financials:
Primary ticker: ASX:JGH
Stage of development: Exploration
Primary minerals: Natural Gas
Project to promote: Tavan Tolgoi Coal Bed Methane Project
Project location: Mongolia
Website: www.jadegas.com.au
Jade Gas Holdings Limited (ASX:JGH) is a gas exploration company focused on achieving a cleaner and independent energy supply for Mongolia by developing its Tavantolgoi Coal Bed Methane gas project (TTCBM) located in the South Gobi region, which has an independently assessed Gross Prospective Resource of 1.0 Tcf of gas. The project is being developed in partnership with the Mongolian government to deliver the country’s first domestic gas supply and is ultimately designed to support Mongolia’s aim to decarbonize the economy by improving the energy mix with cleaner fuel sources, deliver on its climate change commitments, and improve environmental and health benefits for its people. The Company recently announced a substantial maiden contingent gas Resource of 246 Bcf and is currently focused on resource expansion, exploration and customer activities ahead of pilot gas production in 2023.
Cash: AUD$3M
Debt: NIL
Major shareholders:
GM Ventures – 23.9%
UB Metan LLC – 9.7%
Scor Go Luath Ltd – 5.8%
E&E Hall Pty Ltd – 6.8%
Daniel Eddington – 3.4%
Management Ownership – 34.9%
Management Profile
Joe Burke – Executive Director
Mr Burke is an experienced mining executive. He has spent over 30 years working and living in Asia and has been involved in Mongolian mining projects since 2009. In previous roles Mr Burke was a Director and founding partner of the mining venture capital group Starboard Global and the CEO of ASX listed Voyager Resources Limited (ASX: VOR) which had projects based in Mongolia. He has also undertaken advisory roles with an Asian focus and with other ASX listed entities including American Pacific Borates Ltd (ASX:ABR), and Black Rock Mining Limited (ASX:BKT).
Mr Burke holds an MBA from the Australian Graduate School of Management (AGSM).
What is your rationale for taking part in 121 Mining Investment?
We are looking to expand our shareholder base and build liquidity in the stock. As an exploration company looking to progress its flagship TTCBM Project through to pilot production, as well as expand its exploration drilling program, there is always a need for capital, however, we anticipate that this will be generated primarily from strategic and infrastructure investors.
What recent news would you like to highlight to investors attending?
Global energy crisis is impacting supply and demand for natural gas, which in turn has created an opportunity for all gas explorers and producers, with gas now recognised as essential transitional step on the way to fully renewable energy sources.
Jade has established the potential for a substantial gas field at Tavan Tolgoi over a 45km strike, as well as demonstrating gas market demand with offtake interest from Mongolia’s largest gas distributor, a local major mine developer with and the expectation that others will soon follow.
Recent gas exploration drilling success has delivered wells with high gas content and pipeline spec composition. Jade also booked an initial sizeable coal bed methane unrisked Gross 2C Contingent Resource of 246Bcf, highlighting the enormous potential of the TTCBM Project.
What are your key goals for the next 3, 6 and 12 months?
3 Months:
Complete extended production test of two vertical wells and complete four core hole wells to increase the size of the Contingent Resource at the TTCBM Project.
6 Months:
Drill four horizontal pilot production wells and have them completed and ready for first production.
12 Months:
Prove up a stabilised commercial gas flow from the four horizontal pilot wells at the TTCBM Project.
What do you see as the key risks and challenges facing your company at the moment and how are you overcoming these?
Embryonic gas industry in Mongolia and hence an as yet undeveloped downstream market. We are working with a number of downstream companies that are interested in securing a supply of gas as a baseload requirement for their operations. Designing our pilot wells to produce gas at commercial rates is the next major focus of the company.
What do you think makes your company such a compelling investment?
We have taken the learnings from Queensland in Australia and applied it to the coals of Mongolia. As a result, we have significantly derisked the exploration element of our TTCBM Project, ie we have found substantial quantities of gas and are now in the process of proving the commercial capability of the permit. There is also significant upside with the majority of the permit still unexplored. With a number of parties showing interest in our gas potential, once commercial gas flow is proven then it will be a race to secure our sizeable and reliable source of natural gas.
What are the top 3 key investor takeaways?
1. It is a compelling time to develop new gas assets, and Jade has Mongolia’s flagship CBM asset that is not far away from producing Mongolia’s first gas
2. We are replicating what has already taken place in Queensland up in Mongolia, with Australia now the largest exporter of LNG in the world thanks to successful CBM extraction
3. The downstream market is in need of gas, the Mongolian Government is supportive of building a gas industry, and we have a large contingent resource that will be proven over the coming 12 months