Jade’s A$3.64m Loan Raises Stakes Ahead of Critical Gas Breakthrough
Jade Gas Holdings has secured a A$3.64 million director loan to advance production at its Red Lake Gas Field, anticipating a transformational gas breakthrough this quarter.
- A$3.64 million unsecured director loan executed
- Funds allocated to Red Lake Gas Field well production
- Loan carries 8% annual interest over 24 months
- Two horizontal CBM wells brought online in June 2025
- Company expects transformational gas breakthrough this quarter
Loan Facility to Accelerate Production
Jade Gas Holdings Limited (ASX, JGH) has announced a significant financial boost with the execution of a A$3.64 million (US$2.375 million) unsecured director loan from Executive Director Joseph Burke. This funding is earmarked to support ongoing well production activities at the company’s flagship Red Lake Gas Field in Mongolia, alongside general working capital needs.
The loan, carrying an 8% annual interest rate and a 24-month term, was approved by non-conflicted directors under the company’s governance framework and is structured as an arm’s length related party transaction exempt from shareholder approval. This move provides Jade with enhanced financial flexibility as it pushes forward with its coal bed methane (CBM) projects.
Operational Progress at Red Lake
In June 2025, Jade brought two horizontal CBM production wells online at Red Lake, marking a key operational milestone. The company now anticipates a transformational gas breakthrough within the current quarter, a development that could significantly advance its commercial prospects in the region.
Red Lake is part of Jade’s broader strategy to develop Mongolia’s CBM resources, which includes the Tavantolgoi XXXIII unconventional oil basin project and joint ventures with Mongolian government entities and major mining companies. These projects aim to reduce Mongolia’s reliance on imported fuels and support the country’s energy transition.
Strategic Vision and Market Implications
Jade’s vision extends beyond production, targeting the supply of cleaner, domestically sourced gas to Mongolia’s power and transport sectors. By leveraging CBM resources, the company hopes to contribute to decarbonizing Mongolia’s economy, improving air quality, and enhancing energy security in the resource-rich but energy-import-dependent South Gobi region.
The director loan underscores the board’s confidence in the company’s operational trajectory and the potential value of its gas assets. However, the timing and scale of the expected breakthrough remain to be seen, and market participants will be watching closely for further updates on production metrics and commercialisation pathways.
Bottom Line?
Jade’s director-backed loan sets the stage for a pivotal quarter at Red Lake, with the market awaiting proof of its gas breakthrough potential.
Questions in the middle?
- What specific production metrics will define the anticipated gas breakthrough?
- How will Jade manage funding and operational risks as it scales production?
- What are the regulatory and market conditions in Mongolia that could impact commercialisation?