Blue Energy advances next development phase in Queensland and NT projects
Blue Energy (ASX: BLU) is preparing to move to the next stage of development at its key gas and oil projects in Queensland and the Northern Territory.
Blue confirmed new activity at its Sapphire gas pilot project in Queensland’s Bowen Basin, and the acquisition of new data for future exploration in its NT assets.
At the Sapphire project, Blue has re-instated pilot production testing of the Sapphire 5 and 6 wells.
That work has seen aggregate gas flow rate from the Sapphire pilot rise to 0.12 terajoules per day.
A commensurate increase in water production rate has been noted as the Sapphire 5 and 6 wells re-enter the dewatering phase as the water levels are brought down toward the upper coal intersection levels in Sapphire 5V.
Moranbah gas project
Also in that state, Queensland Pacific Metals (QPM) has confirmed it intends to take gas that Blue makes available for delivery to the Moranbah Gas Project in line with the existing non-binding MOU executed in 2023.
QPM, operator of the TECH nickel refinery project in Townsville and owner of the Moranbah Gas Project recently made a strategic decision to focus on growing its Moranbah gas production assets including gas supply from third parties.
In the NT, Blue has acquired the Geoscience Australia (GA) regional raw 2D seismic data shot over Blue’s EP 200, and 207 permits in the Wiso Basin area.
Blue is currently independently processing the section of the data relevant to the prospective section in these permit areas.
Surat basin plans
In Surat Basin permit ATP 854 in Queensland, Blue continues to work with the Queensland Government to secure the grant of potential commercial areas (PCAs).
Blue has 398 PJ+ of contingent resources (recoverable gas) in ATP 854 as assessed by NSAI. The gas resource is located near the heart of the CSG–LNG Surat Basin gas supply precinct and has gas pipeline infrastructure linking Wallumbilla to Gladstone running directly through the permit.
Positive early reflection
Initial inspection of GA sections indicates a similar sequence of sedimentary reflectors to those emanating from EP’s 168 and 198 to the north of Blue’s acreage and within the Beetaloo sub basin.
The GA data is deep seismic data with record lengths of up to 26 seconds of seismic time. Blue is currently independently processing the GA data to focus on the zones of prospectivity for oil and gas entrapment.
Other work conducted by GA as part of the regional assessment includes correlation of recorded oil shows in mineral bores recorded in the Birrindudu (Wiso) Basin.