The Shivee Gobi and Eastern Gobi permits awarded to the company are located in known coal basins
The two CBM permits are spread over an area of 18,000km2.(Credit: Terry McGraw from Pixabay)
Australia-based Jade Gas has been granted 100% of two coal bed methane (CBM) permits, namely Shivee Gobi and Eastern Gobi, in Mongolia.
The Mineral Resources and Petroleum Authority of Mongolia (MRPAM) has awarded the CBM permits, which are spread over an area of 18,000km2. Their location is in known coal basins that are said to have significant coal deposits.
According to Jade Gas, the awarding of the prospecting agreement permits builds on its past experience in undertaking prospecting work and negotiating a production sharing agreement (PSA) with the Mongolian government and regulators.
Jade Gas is a gas exploration company with a focus on the CBM potential of Mongolia. The company’s flagship asset is the TTCBM project in the Tavantolgoi XXXIII unconventional oil basin in the South Gobi region.
The Australian firm is partnered in the CBM project by Erdenes Methane, which is a representative of the Mongolian government.
Jade Gas CEO Chris Jamieson said: “Securing 100% of two highly prospective coal bed methane Prospecting Agreements is a real coup for Jade and its shareholders.
“The Shivee Gobi and Eastern Gobi permits are an excellent addition to our flagship TTCBM Project, which allows us to expand our exploration and appraisal for natural gas from the coal seams that sit within the boundaries of these really extensive permits.
“Our strategy has been to expand our footprint with permits that have the right address, and that address is near and next to existing coal mines and deposits, where we are confident there are coals at depth that have the potential to be gas bearing and producing.”
The Shivee Gobi permit spans an area of 8,317km2. It is located nearly 300km south of Ulaanbaatar.
Jade Gas said that it has negotiated commitments for minimal expenditure on the CBM permit over a three-year prospecting period.
The Eastern Gobi permit, which is spread over an area of 9,691km2, is situated nearly 450km south of Ulaanbaatar.
At the TTCBM Project, Jade Gas is currently drilling the Red Lake-4 and Red Lake-2 wells, which are the third and fourth wells in a six-well drilling programme.