Jade Gas (JGH.ASX) Launches $2.1m SPP… Mongolia’s Gas Ambitions Heat Up

In a decisive step toward becoming Mongolia’s first commercial gas producer, Jade Gas Holdings Limited (ASX:JGH) has announced a $2.1 million Share Purchase Plan (SPP) for existing shareholders. The offer gives eligible investors the chance to apply for up to A$30,000 worth of shares at 3.5 cents per share, without paying brokerage.

The SPP matches the pricing of Jade’s recent $5 million placement and aims to fund the next phase of development at the company’s flagship Tavan Tolgoi Coal Bed Methane (TTCBM) Project in Mongolia’s South Gobi region. It represents a critical phase in Jade’s transition from exploration to early production, with gas now flowing continuously from production wells.

For new investors following the story…

this capital raise highlights Jade’s broader ambition: helping Mongolia reduce its dependence on imported diesel by developing a local, cleaner source of energy.

The funds raised through the SPP will be directed toward key objectives. Jade plans to complete its Plan of Development and Operations (PDO), advance modular LNG production facilities, and continue early works to position the Red Lake field for first commercial revenues. This focus aligns with rising domestic demand for Liquified Natural Gas (LNG), particularly across the South Gobi region, where local industries seek cleaner fuel alternatives.

For those new to the concept, a Share Purchase Plan enables existing shareholders to buy additional shares directly from the company, typically at a set price and without brokerage fees. Details about how SPPs operate can be found in the ASIC Guide to Share Purchase Plans.

Since 2019, Jade Gas has been developing the TTCBM Project,

now recognised as Mongolia’s leading coal bed methane discovery. The company has drilled more than 29 wells with a success rate of around 90 per cent, confirming extensive, gas-rich coal seams at shallow depths well suited for low-cost extraction.

In August 2025, Jade achieved sustained gas flow from two horizontal production wells, marking a significant milestone toward commercialisation. The company anticipates first revenue from gas sales in Q4 2025, supported by ongoing development of a 40 kilometre long gas field at Red Lake.

Mongolia’s path to energy transformation underpins the importance of Jade’s project. For years, the nation has relied on imported diesel and coal-based energy, constraining industrial growth. The government has made strong commitments to improve domestic energy security while honouring its obligations under the Paris Agreement.

According to the International Energy Agency’s Mongolia Framework, the country now prioritises domestic gas as a cleaner transitional fuel. Jade’s TTCBM Project supports this national agenda by offering a scalable, lower-carbon energy source that can strengthen Mongolia’s energy independence while improving air quality in key mining regions.

Geography plays a defining role in Jade’s advantage. The Red Lake field lies close to the Chinese border, connecting Jade directly to the world’s largest LNG market and adjacent Mongolian mining operations that depend on imported diesel.

This advantage is reinforced by a five-year LNG offtake agreement with UB Metan LLC, Mongolia’s largest LNG retailer. The agreement covers 20 per cent of Red Lake’s production and is linked to market pricing of about US$20 per gigajoule, providing early revenue visibility. China’s expanding LNG demand, as outlined in the IEA Global Gas Security Review, further supports the project’s regional potential.

Jade’s board blends commercial strength, technical knowledge, and local expertise. Executive Director Joseph Burke oversees corporate strategy, while Non Executive Directors Daniel Eddington, Dr Ian Wang, and Uyanga Munkhkhuyag contribute expertise in capital markets, petroleum development, and governance within Mongolia. The company’s ownership structure reinforces alignment, with management holding approximately 26.2 per cent of issued shares and UB Metan LLC owning 17.1 per cent. Details are available at Jade Gas Board of Directors.

Mongolia’s energy sector stands on the edge of transformation. The nation’s coal bed methane resources present an opportunity to supply domestic industries and neighbouring Asian markets with cleaner, homegrown energy. As noted by the World Bank’s Mongolia Energy Overview, local energy development is crucial to improving economic resilience and sustainability.

The coming months are pivotal for Jade Gas as it completes its development plan, installs modular LNG infrastructure, and targets first commercial gas production. These milestones are central to both the company’s strategy and Mongolia’s ambition to build a modern, lower-carbon energy economy.

The $2.1 million SPP gives Jade the capital to move from pilot production to early revenues, reinforcing its position as a company shaping Mongolia’s cleaner energy future.

Frequently Asked Questions (FAQ)

1. What is a Share Purchase Plan (SPP)?
A Share Purchase Plan is a capital-raising mechanism that allows existing shareholders to purchase additional shares directly from the company, typically at a fixed price and without paying brokerage. The goal is to give retail investors the same access to company shares as institutional investors. You can learn more about how SPPs work through the ASIC Guide to Share Purchase Plans.

2. Who is eligible to participate in Jade Gas’s $2.1 million SPP?
Only existing shareholders who were on the company’s register as of the record date are eligible. Each eligible shareholder can apply for up to A$30,000 worth of shares at an offer price of 3.5 cents per share, with no brokerage fees.

3. How will Jade Gas use the proceeds from this SPP?
Funds raised will be directed towards completing the Plan of Development and Operations (PDO), establishing modular LNG facilities, supporting early revenue works, and covering working capital needs. These steps are designed to help the company progress towards first commercial gas production.

4. When does Jade expect to achieve first commercial gas revenues?
Jade Gas expects to generate initial commercial revenues in the fourth quarter of calendar year 2025, following continuous gas flows from production wells at the Red Lake gas field in Mongolia’s South Gobi region.

5. Why is Mongolia’s location important to Jade’s gas strategy?
Mongolia’s Red Lake gas field is located close to the Chinese border, offering access to the world’s largest LNG market and nearby industrial consumers. This geographic advantage, combined with an existing five-year offtake agreement with UB Metan LLC, positions Jade Gas to supply both domestic and regional demand efficiently.

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DISCLAIMER: The information in this article does not constitute personal financial advice. Consult your adviser or stockbroker prior to making any investment decision