Blue Energy brings Sapphire 5 and 6 pilot gas wells back online after production issues
Gas developer Blue Energy (ASX: BLU) has successfully brought its Sapphire 5 and 6 lateral pilot wells back online after they were impacted by mechanical issues.
Surface facility maintenance issues involving generators had interrupted production testing of the pilot wells.
Field staff have begun dewatering the wells following these interruptions and they continue to produce gas at a rate that is building as the dewatering progresses.
R&D tax rebate
The company has lodged its application for a 2024 research and development (R&D) tax rebate against expenditure on the Sapphire project and expects to receive the funds in the current quarter.
The Sapphire pilot is situated within the PL 1034 production licence application area and is located immediately adjacent to the Moranbah gas project (MGP) recently acquired by Queensland Pacific Minerals Energy (QPME).
Blue and QPME have executed a non-binding agreement to supply pilot gas to the MGP from the Sapphire pilot via a proposed pipeline from the Sapphire pilot location to the Node 3 compressor station within Moranbah.
Government approval
The Queensland Department of Environment, Science and Innovation (DESI) has granted Blue a site-specific environmental authority (EA).
The EA covers the proposed development of the PL 1034 gas resource and is a state requirement for the granting of the production licence.
The Environmental Advocacy in Central Queensland Inc has lodged an appeal against the issuance of the licence with the Land Court.
NT showing promise
Blue has also continued technical work on its Northern Territory acreage, focusing on identifying potential drill locations, land access activities and tenure management issues.
Interpretation of newly obtained and processed two-dimensional regional seismic data across the EP 200 and EP 207 permits in the NT has yielded promising stratigraphic correlations with areas further to the north and east.
The company believes the sedimentary sequence observed on the new seismic reading suggests a correlation with the Glyde package seen in the McArthur Basin to the east, where gas discoveries have been made.
Blue’s technical team is now assessing locations for potential drill holes to further confirm the stratigraphy and sample this sequence for oil and gas potential.