Blue Energy boosts Surat Basin gas resource by 300%

Blue Energy ASX BLU gas resource update ATP 854 Surat Basin
Blue Energy is considering the permit as a potential initial supply option for its gas offtake deals inked with Origin Energy and Energy Australia.

Aspiring gas producer Blue Energy (ASX: BLU) has announced it has quadrupled the recoverable gas resource estimate for its wholly-owned permit ATP 854 in Queensland’s Surat Basin.

The company today revealed the upgrade from 101 petajoules to 398Pj of 3C contingent resources based on a review by world-class independent certifier Netherland Sewel and Associates Inc (NSAI).

Both 1C and 2C contingent gas resource categories also increased by more than 300%.

Aggregate corporate 3C recoverable gas resources (across Blue’s entire asset portfolio) have now increased by 7% with this upgrade to 4,476PJ.

Existing gas pipeline runs through permit

Permit ATP 854 in Queensland’s Surat Basin is located near the heart of the coal seam gas (CSG) to liquefied natural gas (LNG) gas supply precinct.

It lies west of the Santos (ASX: STO) operated GLNG Fairview and Origin Energy’s (ASX: ORG) APLNG Spring Gully projects, as well as north-west of the GLNG Roma project.

The permit has existing gas pipeline infrastructure, which links Gladstone to the Wallumbilla gas hub, running through it.

“The ATP 854 gas resources therefore have a clear potential for near-term economic development using this infrastructure,” Blue stated.

Resource upgrade shows potential for new gas supply for offtake deals

In the last year, Blue inked gas offtake deals with Origin Energy and Energy Australia to supply up to 400PJ of gas for a 10-year period from the Wallumbilla hub.

In today’s announcement, Blue said gas from the Surat Basin permit will be considered as a potential initial supply option for these supply agreements and to augment the company’s North Bowen Basin gas reserves and resources.

Blue managing director John Phillips said the resource upgrade signifies the potential for a significant new gas supply from ATP 854.

“The declaration of the four existing potential commercial area (PCA) applications lodged by Blue (and awaiting approval with the government) over this permit is vital for further appraisal to be undertaken so this new gas supply can be assessed and brought to the east coast domestic market as soon as possible,” he said.

ATP 854 is the most southerly permit in Blue’s portfolio. The company also holds gas assets in the North Bowen, Galilee and Beetaloo/Greater McArthur Basins in Queensland and the Northern Territory.

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