Path to Commercial Gas Production slide image

Path to Commercial Gas Production

TTCBM Project High gas content and composition with thick gas bearing coal seams of interest ■ TAVANTOLGOI-XXXIII Production Sharing Agreement (PSA): 665 km² area over the Tavan Tolgoi coal field (Jade 60%) ■ Eight wells drilled by Jade in 2019 defined targets for current drilling ■ PSA awarded in October 2020, with tenure up to 30 years ■ Gas bearing coal seams may extend through ~220 km² of coal fields to south and southeast of the PSA area ■ Four of six wells drilled to date; up to 68 metres of gas bearing coals; 92.5%-98% methane; gas content of 11-15m³/t Permeability test work ongoing, gas saturation measurements expected within months ■ Permian coals within permit are similar in age to Bowen Basin, Qld TTCBM Prospective Resources¹ Gross Unit Bcf Low 216 Best 1,044 High 3,062 MGR Campo Red Lake-6 Tavan Tolgoi 0 о Red Lake-5 0 Red Lake-20° Red Lake-3 Tavan Tolgoi coal field Tavan Tolgoi coal mining activity Major road O 2019 drilling campaign 2021/22 Red Lake drilling campaign Central core area Map by flatEARTH mapping.com.au | Contains data Open Street Map contributors. • Red Lake-1 • Red Lake-4 Tavan Tolgoi Tsogttsetsii CENTRAL 2.5 km CORE AREA TT CBM Project Area 1. Prospective resources are undiscovered and have both an associated risk of discovery and a risk of development. Further exploration appraisal and evaluation is required to determine the existence of a significant quantity of potentially moveable hydrocarbons. An Independent Technical Specialist Report (ITSR dated 24 June 2021, RISC Advisory) was provided in the Jade Prospectus (14 July 2021) and contains further detail regarding sources of and information in respect of the unrisked Prospective Resource Estimate above, which has been extracted from the ITSR. The additional information includes the basis of the probabilistic estimates, further activities to be undertaken in respect of the TTCBM Project and an assessment of risks associated with the estimates. Jade has a 60% interest in MGR however the Net outcome for MGR is dependent upon the sharing requirements of the PSA which vary according to production rate, capital costs, operating costs and pricing and are therefore currently indeterminate. 11
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