Blue Energy reports notable gas resource increases in Central and Lancewood Blocks

Blue Energy BLUhas unveiled significant gas resource increases at two of its project areas in Queensland.

Independent certifier, Netherland Sewell and Associates Inc (NSAI) has provided upgraded gas resource estimates at Blue Energy’s 100% owned and operated Lancewood and Central Blocks, located in permit ATP 814 in the onshore North Bowen Basin.

At Lancewood, NSAI has estimated a 32% increase in the 3C contingent resource to 573 petajoules (PJ).

At Central it reported a 53% increase in 3C contingent resource to 469 petajoules and reassigned 75 petajoules of 3P Reserves to contingent resources.

The company’s total corporate 3C contingent resources have been increased to 4,836 petajoules.Sapphire studies still underway

Blue Energy is now awaiting NSAI’s completion of reserves and resource estimates for the Sapphire Block of ATP 814, following the drilling of the Sapphire 5 and 6 Pilot wells in 2022. The estimates are expected within the next few weeks.

In the meantime, Blue Energy has made application to the Queensland Government to convert the existing Lancewood and Central Block production licence applications (PLA 1038 and 1045) to potential commercial area applications, as the company believes it would be better to allocate company resources at this time to a Sapphire production licence application.

The NSAI review, which incorporated regional geological data from adjacent licences and current path to market options, included technical geological data relating to coal seam thickness, coal seam depth, gas content data, seam continuity data and production data from the adjacent activity to the Sapphire Block.Active period

Blue Energy has also reported a busy quarter with a number of highlights including a Sapphire pilot well gas flow rate of 140,000 standard cubic feet per day (scfd) in April and more recently 100,000 scfd before a decision was made to shut in the pilot wells to conduct a pressure build up survey, to assess pressure connectivity between the Sapphire 5 and 6 pilot wells.

The company also signed a memorandum of understanding (MoU) with Queensland Pacific Metals Energy (QPME) for the sale of Sapphire pilot gas securing access to Moranbah Gas Plant and Townsville domestic market.

Blue Energy has identified the MoU will provide it with a straight-forward path to the commercialising of its Sapphire pilot gas flow from the appraisal pilot well production testing activities.

The Sapphire pilot project is located only three kilometres from QPME’s low pressure gas gathering system.

Desk top engineering works are underway to establish the mechanics and logistics of the tie in point and transfer point for the delivery of the gas.

Blue Energy and QPME’s parent company QPM already had an existing MOU for the supply of 7 petajoules per annum of gas over 15 years to QPM’s proposed nickel refinery in Townsville.Environmental authority upgrade

Recently, Blue Energy was successful in its application to the Queensland Department of Environment and Science (DES) for the upgrade of the environmental authority’s (EA) for the Sapphire, Central and Lancewood Blocks of ATP 814 to allow for the all important grant of production licences by the state government.