Blue Energy reaches second lateral well target of Sapphire Block appraisal program
Blue Energy (ASX: BLU) has reached the target of the second lateral well of its Sapphire Block appraisal program within ATP-814.
The second lateral well Sapphire 5L2 hit its target after drilling over 1,100m into the coal seam, and also intersected the Sapphire 5V vertical well as planned.
However, during drilling the drill string became stuck in the lower part of the horizontal section of the well.
Drilling was moved to finish the Sapphire 5L3 lateral well and another lower cost rig will be moved to Sapphire 5L2 to retrieve the stuck string.
Well appraisal program
Drilling at the Sapphire Block is part of a well-appraisal program to build reserves within the wider ATP-814 permit, which is located in Queensland’s northern Bowen Basin.
Silver City Drilling is carrying out the program which includes two vertical wells – Sapphire 5V and Sapphire 6V.
Each vertical well will have a set of up to four lateral wells that target prospective coal seams.
To-date, Sapphire 5V and Sapphire 6V have been drilled to their planned depths, logged, and had production casing run and cemented in place.
Of the lateral wells, Sapphire 5L1 and Sapphire 5L2 have been drilled.
Sapphire 5L1 reached 1,155m of the horizontal in-seam section and also intersected Sapphire 5V. Sapphire 5L2 was drilled to 1,130m into the horizontal seam as well as intersecting Sapphire 5V.
The vertical wells act as the water producer for the lateral wells, with the lateral wells able to meter and measure gas flow from each individual coals seam.
North Bowen Basin
According to Blue, the north Bowen Basin has around 15,000 petajoules in gas resources, which is enough to meet 30-years of east coast gas demand.
Blue’s ATP-814 has about 3,000PJ in gas resources, which is enough to meet eight years of east coast demand.
The current drilling program at the Sapphire Block is targeting the Permian coal measures: Rangal, Fort Cooper, and Moranbah.
ATP-814 is adjacent to Arrow’s Moranbah operation, which is one of the earliest coal seam gas fields in Queensland.
The Sapphire wells are only 2km from producing wells at Moranbah.