Blue Energy (ASX: BLU) has unveiled substantial increases in gas resources at two key project areas in Queensland, marking a significant development for the company. Independent certifier Netherland Sewell and Associates Inc (NSAI) has released upgraded gas resource estimates for Blue Energy’s Lancewood and Central Blocks, both located within permit ATP 814 in the onshore North Bowen Basin.
Expanded Gas Resources: Lancewood and Central Blocks
At the Lancewood Block, NSAI’s estimates reveal a notable 32% surge in the 3C contingent resource, now reaching 573 petajoules (PJ). Meanwhile, the Central Block saw an even more remarkable 53% rise in 3C contingent resource, reaching 469 petajoules. Additionally, NSAI reassigned 75 petajoules of 3P Reserves to contingent resources, further enhancing the company’s resource portfolio.
Strengthened Corporate Resources
These resource upgrades have collectively contributed to a significant enhancement of Blue Energy’s corporate 3C contingent resources, which now stand at an impressive 4,836 petajoules. This increase underscores the company’s commitment to tapping into the vast potential of its Queensland projects.
Sapphire Block Studies and Future Prospects
While Blue Energy celebrates its recent achievements, the company is eagerly awaiting NSAI’s completion of reserves and resource estimates for the Sapphire Block within ATP 814. This follows the successful drilling of the Sapphire 5 and 6 Pilot wells in 2022. These highly anticipated estimates are expected to be revealed within the coming weeks.
In the meantime, Blue Energy has strategically applied to the Queensland Government for the conversion of existing Lancewood and Central Block production license applications to potential commercial area applications. This strategic move aims to optimize the allocation of company resources, particularly as Blue Energy gears up for its Sapphire production license application.
Operational Highlights and Collaborative Ventures
Blue Energy’s recent quarter has been marked by a flurry of activity and notable milestones. The company achieved a significant Sapphire pilot well gas flow rate of 140,000 standard cubic feet per day (scfd) in April, demonstrating the viability of its projects. Additionally, Blue Energy entered into a memorandum of understanding (MoU) with Queensland Pacific Metals Energy (QPME), securing a pathway for the sale of Sapphire pilot gas and access to key markets.
The MoU with QPME lays the groundwork for Blue Energy’s commercialization strategy for its Sapphire pilot gas flow, with a focus on integrating its production testing activities seamlessly. This alignment positions Blue Energy to capitalize on the proximity of the Sapphire pilot project to QPME’s gas gathering system.
Environmental Authority Upgrade and Production License Advancements
Blue Energy’s dedication to responsible and sustainable operations is evident in its recent success in securing an upgrade to the environmental authority (EA) for the Sapphire, Central, and Lancewood Blocks within ATP 814. This achievement paves the way for crucial production licenses to be granted by the Queensland state government, positioning Blue Energy for further growth and progress in its endeavours.
As the company’s gas resources experience substantial growth and its strategic collaborations gain momentum, Blue Energy’s future prospects appear promising. The advancements achieved in its Queensland projects underscore the company’s commitment to contributing to the evolving energy landscape while maximising value for its stakeholders.
