Jade Gas has signed a non-binding collaboration agreement with Beijing Energy Linking and its consortium partners to secure an estimated A$1.1 billion in funding for phase one development at the Red Lake coal bed methane project in Mongolia. The initial phase involves drilling 175 wells, representing approximately 20% of the total planned drilling across the 60-square-kilometre Red Lake Development Area, with the consortium providing up to ten drilling rigs and mobilisation expected between February and March 2027. All capital costs for the phase one drilling programme, including infrastructure such as an upgraded camp facility, roads, communications, water handling and battery energy storage systems, are to be advanced by the consortium under a revenue-sharing mechanism that recovers the investment from future gas sales before profits are split. Plans also include funding for a scalable liquefied natural gas liquefaction facility budgeted at approximately A$215 million to monetise production from the first 40 wells. Jade Gas will retain its ownership interest in the project and has also secured commitments for an A$11 million placement at A$0.12 per share for commercial initiatives, site preparations and a potential Hong Kong listing.
PetroChina Co Ltd Class ASecured A$1.1B funding commitment for Red Lake phase one and A$11M placement