Jade Gas Holdings Limited has reached a major milestone by completing Mongolia’s first horizontal coal bed methane gas production wells at its Red Lake gas field in the South Gobi region. The two newly drilled horizontal wells, designated RL-Hz-002 and RL-Hz-001, are set to undergo the dewatering process pending regulatory approval, with initial gas breakthroughs anticipated in the coming weeks. As water is pumped out from coal seam IIIb, a gradual decline in reservoir pressure is expected to trigger gas flow to the surface, beginning with small initial volumes and increasing progressively over time. The development positions Jade Gas Holdings Limited to tap into Mongolia’s substantial gas resources, addressing growing local demand for cleaner energy alternatives. The gas produced is envisioned as a replacement for diesel in long haul trucking operations and as a feedstock for power generation in large mining operations within the region. The company is actively pursuing partnerships and commercial arrangements focused on technologies for compressed and liquified natural gas, aiming to expedite market entry and secure early revenue streams from its first gas production. Market sentiment surrounding this development is mixed. On the bullish side, Jade’s breakthrough in implementing horizontal CBM technology in Mongolia marks a significant step towards energy independence and an improved environmental profile. The potential for capturing early market value through strategic partnerships and the prospect of a more diversified energy mix provide strong positive signals for the gas sector and local economic growth. Conversely, bearish factors include potential delays related to regulatory approvals and the inherent uncertainties in ramping up production volumes. Technical challenges during the dewatering and pumping phases, along with the risks inherent in forward-looking estimates, suggest that investors should remain cautious as actual production rates and revenue timelines materialize.