Sapphire gas flow more than triples for Blue Energy
Gas flows continue to increase at Blue Energy’s Sapphire Block as water levels gradually lower.
Emerging gas producer Blue Energy (ASX: BLU) has announced a significant increase in the rate of gas flowing from Sapphire pilot production testing project in Queensland’s Bowen Basin.
Gas flows have been increasing as the water level over the uppermost coals is slowly lowered in a controlled manner.
The company today revealed the current separator gas flow rate is 70,000 cubic feet per day, more than three times higher than the 20,000 cfd reported in mid-February.
With continued gradual dewatering, Blue expects the gas rate to continue to steadily increase as the pressure on the coal seams in the pilot wells is gradually lowered.
Gradual dewatering process to minimise damage to coals
Blue confirmed it is cautiously managing the dewatering process in both the Sapphire 5V and 6V wells to minimise potential damage to the coals in the pressure drawdown phase.
The Sapphire 5V vertical water production well is currently producing 135 barrels per day of water, while water production from Sapphire 6V is currently at 110 Bpd of water.
According to the company, the water produced from the two water wells is regularly analysed and remains within the range suitable for provision to livestock as defined by water quality guidelines.
Blue said analysis of the gas stream has returned an average composition of 97% methane, 2% nitrogen and 1% carbon dioxide, which represents pipeline quality gas specifications.
Bowen Basin development
Blue’s objective has been to build the gas reserves base of its 100% owned and operated Bowen Basin permit ATP 814 through the conversion of 3C resources (within the Sapphire Block) to 2P reserves.
The company’s forward plan involves establishing a maximum gas flow rate for the wells/coal seams to refine economic models for optimising development plans.