Jade Gas Holdings (ASX: JGH) has cleared a major regulatory hurdle for its Mongolian gas project, taking a key step towards booking reserves and applying for a production licence.

Mongolia's regulator, MRPAM, has approved Jade's TTCBM Project Appraisal Report, marking the formal completion of the project's appraisal phase.

This approval is a prerequisite for formally booking reserves and registering them with the Mongolian Minerals Council (MRC).

The approved report covers a 4.2km2 area, with the economic analysis based on one out of the three to six known gassy coal seams in the project area.

Pathway to Production Licence Unlocked
Following MRC registration, Jade will submit its Plan for Development of Operations (PDO) that outlines a Phase 1 drilling campaign of up to 175 wells.

Broader field development contemplates approximately 800 wells and a potential project life exceeding 30 years.

Upon PDO approval, Jade will apply for its exploitation licence, enabling the transition towards commercial gas production at scale.

The company continues to engage in positive commercial discussions with domestic and international partners, energy buyers, and infrastructure providers.

Environmental and social impact assessments that form part of the regulatory submissions required for the exploitation licence process are ongoing.

Recent Funding and Operational Progress
Jade recently completed an A$1.8 million placement in March 2026 at A$0.03 per share to support commercial and strategic activities for the Red Lake gas field.

The company's 2025 Annual Report detailed the successful drilling of Mongolia's first horizontal CBM wells.

Continuous gas production commenced in June and August 2025 from two wells at the South Gobi Red Lake Project.

Commercial progress in 2025 also included a conditional LNG Gas Sale Agreement with UB Metan.

Furthermore, a non-binding Letter of Intent (LOI) was signed with Langrun for infrastructure financing.

Outlook and Risks
Jade Gas has achieved a significant regulatory milestone, clearing the path for reserve booking and a production licence application.

While this de-risks the project's progression, the company still faces substantial execution, funding, and regulatory risks as it aims to scale up development and achieve commercial gas production.

Investors will be monitoring the progression of regulatory approvals for an exploitation licence, the achievement of maiden gas reserve booking, and the company's strategy for ongoing funding to meet operational and development expenditure.

Published Date:2026-04-28