Blue Energy to begin well appraisal drilling at ATP 814 next month

Blue Energy ASX BLU North Bowen Silver City Drilling
Blue Energy’s ATP 814 permit is adjacent to one of the oldest and geographically largest gas fields in Australia – the Moranbah project.

Blue Energy (ASX: BLU) expects to kick-off a well appraisal drilling program by late June at its ATP 814 permit in Queensland’s North Bowen Basin.

The company’s contractor Silver City Drilling is anticipated to become available in late June to undertake the program, with spudding of the first well to occur shortly after, where it is targeting multiple coal seams.

Blue’s upcoming program aims to convert contingent gas resources to reserves from the existing inventory in PL 1034 area (Sapphire Block) of ATP 814P.

In readiness for the program, civil work and track access preparations have begun and the company has secured all equipment and services.

Blue has also obtained all land access agreements and cultural heritage clearances with traditional owners.

Global top tier independent certifier Netherland Sewell and Associates Inc (NSAI) has assisted Blue in formulating the drilling program for the Sapphire Block.

Blue uses NSAI to certify all of its oil and gas tenements and pointed out NSAI undertakes certifications for all major coal seam gas and liquefied natural gas producers in the Surat and Bowen basins.

Upside at ATP 814

ATP 814 currently has 2P reserves of 71 petajoules and 3P reserves of 298PJ.

Blue says “significant upside” remains across the permit, with constituent blocks within the area hosting a combined 3,248PJ of contingent resources.

“There is also additional upside in the prospective resources category in the ATP 814 permit of approximately 2,000PJ of gas in place,” Blue noted.

Blue has submitted a production licence application for the Sapphire Block with the Queensland Government and is awaiting approval.

Proximity to Moranbah gas project

Arrow Energy’s Moranbah gas project is immediately adjacent to Blue’s Sapphire Block within ATP 814.

Moranbah is operated under a 50:50 joint venture with AGL Energy (ASX: AGL) and is one of the oldest and geographically largest gas fields in Australia.

Gas extracted from the Moranbah field is supplied to the Townsville power station and industrial customers in north Queensland.

With such an established gas field adjacent, Blue has the advantage of proximity to requisite infrastructure and customers.

Arrow is a joint venture between Shell and PetroChina and operates several coal seam gas fields in Queensland.

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