Blue Energy spuds second well in Sapphire Block appraisal program

Blue Energy ASX BLU spuds second well Sapphire Block Queensland north Bowen basin
Blue Energy’s first well at the Sapphire Block intersected 45m of net coal across the Rangal, Fort Cooper and Moranbah coal measure target formations.

After hitting 45m of net coal in its first well, Blue Energy (ASX: BLU) has spudded the second well of its pilot appraisal program at the Sapphire Block of ATP 814 in Queensland’s north Bowen basin.

The company announced Sapphire 6V has been spudded on 20 July, with a proposed total depth of 900m. This is expected to be reached within three days.

Once Sapphire 6V, has been completed, a series of lateral wells will be drilled in batch format.

Sapphire 5V

Spudding of Sapphire 6V follows the completion of Sapphire 5V, which was the first well of the appraisal program.

Sapphire 5V reached a total depth of 850m and intersected 45m of net coal across the Rangal, Fort Cooper and Moranbah coal measure target formations.

Blue Energy noted the 45m intercepted across the target formations was 20% thicker than expected.

The formations are the same gas productive seams as those found at the Moranbah gas project 2km away.

Taking 3.5 days to complete from spudding, Sapphire 5V operation included acquiring wireline logs, while production casing was run to 847m and cemented in place.

Sapphire 5V will be completed at a later date as a water producing pilot well – once new lateral wells in the current program are drilled and have all intersected Sapphire 5V.

Blue Energy managing director John Phillips said Sapphire 5V had been completed safely and in a timely manner, while intersecting the target seams as prediction.

Mr Phillips added that potential new gas supply from Blue Energy’s acreage was critical to feeding the east coast market, which remains in an energy shortage.

Increased reserves and resources

Latest successes in the pilot well appraisal program at the Sapphire Block follow last week’s announced resources and reserves upgrades.

Independent reserve and resource certifier Netherland Sewell and Associates completed the upgrade for the Sapphire Block, which comprised a 98% increase in 2C gas resources to 213.9 petajoules.

Meanwhile, 1C resources were up 134% to 154.3PJ, and 3C increased 15.2% to 214.4PJ.

There was a 13% rise in 2P gas reserves to 66.5 petajoules, and 3P reserves were up 17% to 253.2PJ.

In 3p-plus-2C aggregate resources, the estimate rose 47% to 467.1PJ of recoverable gas.

Blue Energy pointed out that the entire state of NSW uses about 135PJ of gas annually.

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