Blue Energy advances well appraisal program at Sapphire Block
Blue Energy says its upcoming appraisal program at the Sapphire Block is “vital” to establish new gas supplies for the east coast market, which is in crisis.
Blue Energy’s (ASX: BLU) pilot appraisal program is advancing at the Sapphire Block of its ATP 814 permit in Queensland’s North Bowen Basin.
In an operational update announced today, Blue noted the two initial vertical wells Sapphire 5V and Sapphire 6V have both been drilled to their total depth and logged. The wells have also had production casing run and cemented in place.
Meanwhile, three lateral wells have advanced.
The Sapphire 5L1 pilot well build section has been drilled and cased to 727m and is awaiting drilling of the in-seam section.
Sapphire 5L2’s build section has been drilled and cased to 595m and its in-seam lateral section will be drilled in the next batch phase.
Over at Sapphire 5L3, the well build section has been drilled and cased to 377m. Similar to Sapphire 5L2, this well’s in-seam section will be drilled in the next batch phase.
Drilling is currently underway on the Sapphire 5L4 pilot well which has reached a 31m depth.
Blue noted that drilling of the Sapphire 5L4 build section will “commence shortly”.
Once the build phase at Sapphire 5L4 is complete, the rig will be moved back to Sapphire 5L1 to begin the horizontal in-seam drilling phase.
The in-seam drilling phase will then be completed at the remaining pilot wells in sequence.
“The aim of the in-seam drilling phase is to drill up to 1,000m within the target coal seams for each of the wells,” Blue stated.
ATP 814 gas field
Late last month, Blue revealed it had raised $20 million to accelerate exploration and development at ATP 814.
The $20 million was raised via a “strongly supported” placement that say 322.6 million shares issued at $0.62 each.
Funds from the placement are being used to accelerate the appraisal program underway at the Sapphire Block, which will build resources and reserves.
“It is clear that there is an understanding from investors of the importance of natural gas supply into the east coast market and the reliance of manufacturing on natural gas, as well as the need for natural gas as a supply for gas fired electricity generation to firm the increasing levels of wind and solar energy in the national energy market mix,” Blue managing director John Phillips said.