Highlights

  • Total gas production for October rose by 19% compared with September.
  • Dewatering operations continued with both horizontal wells maintaining high operational uptime.
  • Field Development Plan and Economic Study remain on track for completion.

Jade Gas Holdings Limited (ASX:JGH) released its Monthly Operations Report for October 2025, indicating a continued upward trend in gas production from the Red Lake Gas Field in Mongolia’s South Gobi region. The company recorded a 19% month-on-month increase in total gas output, driven by steady improvements in production efficiency.

During October, both horizontal wells  RL-Hz-01 and RL-Hz-02 remained operational and continued dewatering activities. Fluid levels are now approaching the minimum levels required for pumping operations. Gas flow rates rose steadily during the month, aligning with the expectations of Jade’s drilling contractor, DWK.

The report noted that while the rate of production increase was lower than the previous month, this was expected due to the comparative base from August, during which both wells had partial gas flow periods.

Production and Operations Snapshot

For October, total gas output reached 39,389 m³, up from 33,142 m³ in September. Average daily production rose to 1,271 m³, compared with 1,105 m³ in the prior month. Water production for the month totaled 1,315 m³, slightly lower than the previous month’s 1,351 m³.

Both wells maintained excellent performance, with RL-Hz-01 recording 99.5% uptime and RL-Hz-02 achieving 99.9% uptime. Water extracted from the wells continues to be trucked to the nearby Tavan Tolgoi coal mine, operated by Erdenes Tavan Tolgoi, where it is used for industrial operations.

Technical and Reservoir Management

Jade Gas stated that well management follows best-practice operations modeled on the Qinshui Basin in China, which serves as a geological analogue for Red Lake. The company and its contractor continue to monitor water drawdown carefully to prevent reservoir damage and allow gas flow rates to stabilize following adjustments.

Looking Ahead

Jade Gas plans to continue pumping operations to maintain low flowing bottom-hole pressure and to establish sustainable commercial flow rates. Once achieved, these results will inform the resource and reserve estimate to be submitted to Mongolian regulators. Additionally, the company is assessing the potential need for further 2D or 3D seismic surveys in 2026 and evaluating long-term production infrastructure requirements. Discussions are ongoing with midstream gas processing and liquefaction providers to support the Red Lake field development and inform future economic assessments.

Share performance of JGH

JGH’s shares traded at AUD 0.037 per share on 06 November 2025, up by 23.33% from its previous close of AUD 0.030.