Jade Gas Holdings (ASX:JGH) achieved gas flow from its first horizontal production well at the Tavantolgoi coal bed methane project in Mongolia, according to a Tuesday Australian bourse filing.

Further gas flaring and water pump rate adjustments will be made to achieve stable, continuous production. It will complete gas flow rate measurements and further reservoir evaluation at the well.

The second production well is performing to expectations, with gas flow expected shortly, the filing added.

Once gas flow rates are known across both wells, the field development plan will be finalized.