Blue Energy continues to add shine to Sapphire gas project

Go to Colin Hay author's page
By Colin Hay - 
Blue Energy ASX BLU Sapphire gas project Queensland Department of Environment and Science

Boosted by a government rebate, Blue Energy (ASX: BLU) continues to make strong technical progress at its Sapphire project in permit ATP 814 in Queensland’s onshore Bowen Basin.

The company was recently granted a research and development rebate of $275,425 from the Australian Tax Office for its work on the Sapphire pilot drilling planning phase.

Blue is now looking forward to a similar result as it prepares to lodge another R&D claim covering the larger quantum of drilling activity.

Pilot testing progressing

The additional capital will prove to be useful as Blue continues to progress its Sapphire pilot well testing program.

The company is now assessing results of pressure build up testing following the shut in of the Sapphire pilot on the 31st of July. This was followed by the commencement of the acquisition of build up data on the 9th of August and the recommencement of dewatering activities on the 26th of  August.

The testing activities required all lateral gas production wells to be shut in, while dewatering will continue until the laterals are opened up for resumption of gas production, which is estimated to commence around the 20th of September.

Gas pipeline study

Meanwhile, Blue has welcomed the completion of phase two of the Queensland government’s ongoing Bowen Basin gas pipeline study.

Funded by government and managed by KPMG, the study identified a number of key elements which are positive for Blue and its significant Bowen Basin position.

The study noted that the development of Bowen Basin gas could help address forecast east coast gas shortfalls.

It also identified that development of Bowen Basin gas would benefit the local Queensland economy and play an important role in transitioning to a future low emissions energy network.

It also found that there is an opportunity for government to support industry to enable the development of a pipeline to unlock the Bowen Basin.

New appeal lodged

In other news, Blue Energy is waiting for further details to emerge on a new appeal against the Queensland Department of Environment and Science’s (DES) environmental approval (EA) of the company’s proposed activities in permit ATP 814.

An initial objection from environmental activist group, Lock the Gate, was overturned when the DES confirmed that its internal processes were sound and its original decision to award Blue Energy its EA was justified.

However, Environmental Advocacy in Central Queensland Inc, a group Blue Energy believes is linked to the Lock the Gate organisation, has now engaged the Environmental Defenders Office to lodge an appeal in the Queensland land court regarding the decision to award the EA.

Blue Energy says it is now awaiting details of the position that the DES intends to take with respect to the matter so that it can review the implications of this appeal and consider its own actions.