Jade Gas Holdings (ASX:JGH) lodged an initial plan for development of operations at its TTCBM project with the Mongolian Minerals Reserve Council, according to a Monday filing with the Australian bourse.

The plan details the framework for drilling, dewatering, production, and long-term management of the project, per the filing.

Jade also reached an agreement on the proposed production license area with the Mongolian regulator. The agreed production area size 502 square kilometers covers about 80% of the existing exploration area, the company said.

It added that once granted, the production license will transition TTCBM from an exploration asset to long-term commercial development, giving Jade rights to produce and monetize its gas resources.

The company's shares fell nearly 5% in recent Monday trade.