Jade Gas Holdings Ltd (ASX:JGH) announced on 21 September 2026 that it is advancing plans for a deeper exploration program at its flagship TTCBM Project in Mongolia to investigate whether the established coal-measure gas system extends into additional gas-bearing horizons at depth. The initiative aims to evaluate the broader geological sequence beneath the coal seams currently supporting the company’s development strategy.

The proposed program represents an expansion of Jade’s exploration approach beyond its existing focus on shallower Coal Bed Methane (CBM) resources. While the company’s near-term priority remains the development and commercialisation of established TTCBM gas resources at Red Lake, deeper exploration is intended to assess longer-term potential across the broader permit area.

Deeper Exploration Program Targets Additional Gas-Bearing Horizons

Jade Gas has historically focused its exploration and development activities on shallower gas-bearing coal seams within the TTCBM Project.

The new exploration program will investigate whether these established coal-measure gas systems form part of a larger vertically developed system containing additional prospective gas-bearing horizons at depth.

The company stated that the deeper exploration strategy will not be limited to identifying additional coal seams but will assess the wider geological sequence to determine whether other reservoir types may contain gas potential.

This approach is designed to provide a broader understanding of TTCBM’s geological architecture and identify potential opportunities beyond the resources currently underpinning Jade’s development plans.

Ordos Basin Examples Provide Geological Context

Jade’s deeper exploration strategy draws on examples from China’s Ordos Basin, particularly the Hedong Coalfield along the eastern Margin of the basin.

The company highlighted that the region contains vertically stacked gas-bearing horizons within coal-measure sequences, including CBM, shale gas and tight sandstone gas.

The Linxing gas field, historically developed by formerly ASX-listed Sino Gas & Energy, was highlighted as a relevant example. Exploration at Linxing identified multiple gas-bearing horizons within the broader coal-measure sequence, demonstrating the potential importance of evaluating the entire vertical gas system rather than individual coal seams in isolation.

Jade also referenced the Daning–Jixian area, where CBM has been explored and developed from coal reservoirs at depths exceeding 2,000 metres.

These examples are being used by Jade as geological references while evaluating whether similar vertically developed gas systems may exist within TTCBM.

2D and 3D Seismic Programs Planned to Define Deep Targets

Jade plans to undertake targeted 2D and 3D seismic programs to improve understanding of the deeper geological sequence at TTCBM.

The planned seismic work will aim to image geological structures beneath the currently targeted coal seams, identify structural and stratigraphic features and define prospective horizons for future evaluation.

The exploration pathway is expected to progress through several stages:

  • 2D seismic to provide broader structural and stratigraphic definition.
  • Targeted 3D seismic to provide higher-resolution imaging over selected areas.
  • Identification and ranking of prospective horizons.
  • Selection of priority targets.
  • Potential deep exploration drilling and reservoir evaluation.

The seismic data is expected to assist Jade in understanding the depth, distribution, continuity and geological setting of potential deeper gas-bearing zones.

International Energy Interest Supports Further Evaluation

Jade stated that it has received inbound inquiries from international energy companies regarding the potential for deeper gas-bearing horizons at TTCBM.

The company believes that developing a stronger technical understanding of the deeper geological sequence could support discussions with interested international energy companies.

The interest is in addition to Jade’s existing development activities and reflects the potential for TTCBM to offer exploration opportunities beyond the established gas resources currently supporting the company’s development strategy.

Deeper Potential Complements Existing TTCBM Development Strategy

Jade has emphasised that deeper exploration is complementary to its existing TTCBM development plans.

The company’s immediate priority remains the development and commercialisation of established gas resources at Red Lake. The deeper exploration program represents a longer-term opportunity to determine whether the TTCBM gas system extends significantly beyond currently identified horizons.

If seismic programs identify compelling deeper targets, Jade intends to use the results to optimise future exploration well locations and designs.

Successful deep exploration drilling could confirm additional gas-bearing horizons, create a new inventory of exploration targets and expand understanding of the broader TTCBM permit area.

Risks and Uncertainty Factors

The deeper exploration program remains at an evaluation stage and involves geological, technical and commercial uncertainties.

The presence, quality, flow rates and recoverability of any deeper gas resources will require further technical assessment, seismic interpretation and potential drilling.

While examples from other coal-measure gas regions provide geological context, the existence of similar vertically stacked gas systems at TTCBM remains to be determined.

The proposed seismic and future drilling activities will also require funding, technical execution and regulatory considerations.

The company’s near-term development strategy remains focused on established TTCBM gas resources, while deeper exploration represents a longer-term opportunity.

What to Watch Ahead

Investors may continue monitoring Jade Gas’ progress on its deeper exploration strategy and TTCBM development activities.

Key areas of focus include:

  • Completion and interpretation of planned 2D and 3D seismic programs.
  • Identification and ranking of deeper exploration targets.
  • Potential future deep exploration drilling decisions.
  • Updates on discussions with international energy companies.
  • Progress of Red Lake gas resource development and commercialisation activities.

Jade Gas’ latest announcement expands the exploration vision for TTCBM by evaluating whether the project’s coal-measure gas system extends into deeper geological horizons. The company continues balancing near-term gas development with longer-term exploration opportunities across its Mongolian portfolio.