Blue Energy’s (ASX: BLU) well-appraisal program at the Sapphire Block within its ATP-814 coal seam gas field is a step closer to completion with the Sapphire 6L1 well successfully drilled to its planned total depth.
The well was drilled 1,200m horizontally in-seam and intersected the Sapphire 6V vertical well as planned.
A 7-inch casing was run and cemented within Sapphire 6L1 at 721m, within the well’s “build section”.
The 3.5-inch production liner was also successfully run, and the rig has now skidded to drill the next pilot well Sapphire 6L2.
Well-appraisal program
Blue’s drilling program at the Sapphire Block in Queensland’s North Bowen Basin is to firm up reserves to meet east coast gas demands.
The program includes two pilot wells (Sapphire 5V and Sapphire 6V), with each comprising four separate lateral wells.
Each lateral well accesses individual coal seams and their respective vertical pilot well, which acts as the water producer to the lateral wells.
The water producer vertical wells (Sapphire 5V and Sapphire 6V) help the lateral wells to metre and measure gas flow from each coal seam to enable better allocation of seam reserves.
In Blue’s current program, the Sapphire 5V vertical well and four lateral wells have been successfully completed.
Under the Sapphire 6V set, three lateral wells remain to be drilled.
Silver City Drilling is carrying out the program and has drilled 10,775m to-date.
North Bowen Basin
Blue is advocating to the Australian Government and the Queensland Government to unlock the North Bowen Basin gas field.
The Bowen Basin is estimated to host 15,000 petajoules in gas resources, which could provide the east coast of Australia with a “reliable and long-term” energy supply.
According to Blue, new gas supply from the Bowen Basin would place “fundamental downward pressure” on surging gas prices.
Blue plans to contribute to the demand through its 3,000PJ in gas resources across ATP-814.
