Jade Gas Holdings (ASX:JGH) has today asserted it’s the first company to ever bring a horizontal coal bed methane (CBM) well into production in Mongolia.
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“Two horizontal production wells have now been completed for production, and the dewatering process will commence imminently once the Company receives approval from the regulator,” the company wrote on Monday.
(To use a simpler term, a horizontal CBM well is also known as a fracking well.)
Shares jumped 18% in first trade, to 3.3cps, but before we hit 11:30am, some gains were pared off as investors appeared to get out while they could.
Regardless: It’s, if only due to a technicality, a history-making moment for Jade.
Also known as a fracking well, the technicality here is that Jade is set to commence a production well. A number of pilot wells have been sunk in Mongolia by the likes of Elixir Energy (now back in Queensland) and TMK Energy (these days, an illiquid penny stock).
What now remains for Jade – and its share price – is to lock in sales.
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“Jade continues to progress negotiations with partners on these near-term commercialisation opportunities, with a focus on Liquified Natural Gas (LNG) and Compressed Natural Gas (CNG) capabilities to capture value,” Jade added – a sentiment backed by company chief Dennis Morton.
JGH last traded at 3.3cps.
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