Blue Energy identifies potential solution for enhanced gas flow at Sapphire pilot well
Blue Energy (ASX: BLU) has identified a low-cost opportunity to improve gas flow at its Sapphire pilot well program in Queensland.
The company is considering a recommendation for the proposed “twinning” of one of the existing lateral wells to target a single coal seam, after an independent review identified formation damage possibly related to a component of fluid used in the pilot well drilling.
The review was conducted to investigate why flow from the Sapphire 5 and 6 lateral pilot wells was less than expected and lower than the rates tested at neighbouring projects.
It was also found that the lowermost coal seams in the wells remain below the current water level in the vertical wells and still require de-watering.
Gas agreement
The Sapphire pilot well is situated within the production licence application area PL 1034, immediately adjacent to the producing Moranbah Gas Project (MGP).
Blue Energy has an existing agreement to supply gas to the proposed Queensland Pacific Metals (ASX: QPM) nickel refinery in Townsville, with the potential to utilise MGP infrastructure to fulfil the supply agreement.
Blue and QPM have executed a non-binding memorandum of understanding to supply pilot gas via a proposed pipeline from Sapphire to the Node 3 compressor station within the Moranbah gas field.
NT seismic work
Further to the north, Blue has independently processed raw Geoscience Australia (GA) regional 2D seismic data acquired over Blue’s EP 200 and 207 permits in the Northern Territory.
In late 2023, GA independently acquired deep 2D regional-scale seismic data in the Wiso Basin, with a good portion of this seismic data overlapping Blue Energy’s tenements.
Initial assessment of the GA data has confirmed the continuation of the stratigraphic seismic character evident in EPs 168 and 198 to the north and northeast of Blue’s acreage, which is contiguous with elements of the Beetaloo sub-basin and McArthur Basin.
The company feels this is encouraging for the prospectivity of Blue’s acreage in the Wiso/Birrindudu and Greater McArthur Basins.
Blue has also received the go-ahead for the acquisition of 2D regional seismic data in exploration permits EPs 205 and 207.