Blue Energy’s Oversubscribed SPP a Sign of Investor Confidence in Gas Future

Blue Energy’s (ASX: BLU) run of success with its northern Australia gas developments has helped its share purchase plan (SPP) finish heavily oversubscribed.

Blue’s board elected to increase the SPP from its initial target of $250,000 after receiving significant interest from retail shareholders, and the plan eventually brought in $2.6 million.

The outstanding response to the SPP follows Blue’s successful $3.2m placement to sophisticated and institution investors in August.

Sapphire Block Plans

The funds will support Blue’s planning and approvals for the drilling of a pilot well in its Sapphire block, and an appraisal program in the company’s other potential commercial area permits in the North Bowen Basin.

“This transaction will help build the gas reserves in Blue’s ATP 814 tenure, and further cement the case for building infrastructure to bring North Bowen Basin gas to the east coast gas market,” chair John Ellice-Flint said.

“The need for continuously available low-cost reliable electricity is the perfect synergy for more natural gas-fired power generation, and if Queensland is to benefit from new data centre builds and AI infrastructure, [then] gas is key.”

East Coast Gas Market

The total of $5.8m Blue has raised leaves it well funded to progress its Queensland and Northern Territory projects.

“The significant oversubscription to our SPP offering by mainly smaller shareholders demonstrates their clear understanding of the state of the east coast gas market, the importance of natural gas to Australia’s manufacturing and electricity generation sectors, even as the southern States continue to phase out their coal fired generation capacity,” Mr Ellice-Flint said.

“The recent release of the Queensland government’s Energy Roadmap underscores its appreciation of natural gas as a critical component for securing reliable, available, and cost-effective energy.”

Run of Breakthroughs

The successful raisings come as Blue continues to make breakthroughs at its Sapphire project.

Earlier this year, the company won a two-year long court challenge and the state’s land court granted it an environmental authority over the area.

Blue has also recently identified remedies for production issues at the Sapphire pilot program, and is making good progress with testing activities there.

The SPP will see Blue issue 521 million new shares at a price of $0.005.