Proactiveinvestors Australia

Blue Energy well funded for coal seam gas exploration and appraisal after raising A$13.5M

Fri, 13 Apr 2012 16:20:00 +1000

Blue Energy (ASX: BUL) has received strong support from investors, raising A$13.5 million to fund coal seam gas exploration and appraisal work through a heavily oversubscribed share purchase plan.

The exploration and appraisal work is aimed at delivering proved and probable reserves of up to 800 petajoules and proved, probable and possible (3P) reserves of up to 1500 petajoules as part of a broader goal of building up 3P reserves of 3000 petajoules by the end of 2014.

Blue currently holds 3P reserves of 75 petajoules and has stated previously that it is looking to convert its contingent resources of 2788 petajoules of gas into additional 3P reserves.

The placement of shares had received subscriptions for A$17.6 million in new shares priced at A$0.0625 each.

However, this was scaled back to A$13.5 million, which represents 30% of the Blue's issue shares at the date of the placement's launch in accordance with Rule 10 of the SPP Offer Document.

Besides the general interest in coal seam gas, at least part of the strong support is directly attributable to Blue's appointment of former Santos managing director John Ellice-Flint as an executive director of the company.

Ellice-Flint will lead the company's exploration activity in Queensland and besides being responsible for building up its gas reserves, will also pursue new venture growth opportunities.

Blue had earlier raised A$10 million through a placement of new shares to professional and sophisticated investors.

Blue Energy signs up former Santos MD John Ellice-Flint to head up coal seam gas exploration

Thu, 16 Feb 2012 11:20:00 +1100

Blue Energy (ASX:BUL) has scored a coup after former Santos managing director John Ellice-Flint accepted its invitation to join as an executive director of the company.

His appointment, which is subject to shareholder approval, will hand the reins of Blue’s exploration activity in Queensland over to a proven oil and gas executive who recognised the value of the State’s coal seam gas resources.

Besides oversight of exploration in Queensland, Ellice-Flint will also pursue new venture growth opportunities, and be responsible for building reserves up to the company’s stated goal of having 3000 petajoules of 3P reserves by the end of 2014.

Almost lost in the shadow of Ellice-Flint’s appointment is the company’s placement of A$10 million in new shares to professional and sophisticated investors and the launch of a partly underwritten share purchase plan to existing shareholders.

These will fund exploration and drilling programs aimed at delivering proved and probable reserves of up to 800 petajoules and proved, probable and possible (3P) reserves of up to 1500 petajoules.

Blue currently holds 3P reserves of 75 petajoules and has stated previously that it is looking to convert its contingent resources of 2788 petajoules of gas into additional 3P reserves.

The placement of 160 million shares priced at A$0.0625 per share to professional and sophisticated investors, which represents a 20% discount to the 5-day VWAP, is subject to shareholders approving the appointment of Ellice-Flint as a director.

Separately, Blue will offer existing shareholders the opportunity to subscribe for up to A$15,000 of new shares under the same terms as the placement.

The share purchase plan will be underwritten by Intersuisse to A$4 million. It closes on 30 March with shares entering the ASX on 11 April.

Blue will also issue Ellice-Flint more than 41 million new shares as a signing bonus. These are e subject to escrow for 12 months after his appointment and will be subject to forfeiture if Mr Ellice-Flint resigns or is dismissed for cause within that 12 month period.

Blue had cash reserves of A$5.3 million as of 31 December 2011.

Blue Energy in halt pending capital raising announcement

Mon, 13 Feb 2012 12:50:00 +1100

Blue Energy (ASX:BUL) has entered into a voluntary trading halt pending the release of a proposed capital raising, with the company's shares placed in pre-open.

While no indications were given on what the funds will be used for, the coal seam gas junior has previously flagged that it plans to drill and test 3 new pilot production wells in 2012.

These include 2 wells in the Sapphire Block, Bowen Basin, and 1 well in ATP 854P.

Blue will also continue to complete, fracture stimulate and test its 5 Monslatt pilot wells in ATP 814P, Bowen Basin, 3 of which are already de-watering, as well as complete and test the Sapphire 4, 5 and 6 wells.

Success at the Sapphire wells could add up to 322 petajoules to Blue’s proved and probable (2P) reserves while establishment of commercial flow rates at Monslatt could increase 2P reserves by 500 petajoules.

Blue’s permits in the Bowen Basin are located close to Arrow Energy’s permits where gas export infrastructure is being developed.

The company holds 100% of ATP 814P and ATP 854P.

It had A$5.3 million in cash as of the end of December 2011.

Blue Energy to establish water and gas flow rates at Monslatt pilot wells

Tue, 15 Feb 2011 12:21:00 +1100

Coal seam gas company Blue Energy (ASX: BUL) has recommenced completion and testing activities on the Monslatt 4, 5P and 7 pilot wells in order to verify reserves from the current contingent resource base at Monslatt.

Production testing will establish water and gas flow rates in each of these wells over the coming weeks. Results will be verified by Netherland Sewell and Associates (NSAI).

Ahead of Tropical Cyclone Yasi, field operations were temporarily suspended, but Monslatt 7 has now commenced pumping activity to de-water the P Seam coal.

In Monslatt 5P, a series of short radius lateral wells have been drilled into the P Seam. A downhole pump and surface equipment have now been installed, and initial pumping operations to de-water the coals have now commenced.

Completion work on Monslatt 4 has now been finalised and has isolated the P Seam with a pressure gauge to investigate possible reservoir connection with the Monslatt 7 pilot well.

Also, the completion on Monslatt 4 includes an untested Goonyella coal seam which has been isolated from the P seam and completed for production testing. Surface equipment is being installed at Monslatt 4 at this time.

The Monslatt Block of ATP814P currently has 1,295 petajoules (PJ) of recoverable 3C contingent resource (as independently identified by NSAI).

The block also has a shale gas prospective resource of 3,630PJ of gas in place (also as independently identified by NSAI), and is located in close proximity to significant coal mine infrastructure with large energy consumption potential.

Blue Energy all systems go at Monslatt after flooding, no damage to infrastructure

Tue, 11 Jan 2011 14:08:00 +1100

Flooding has receeded and work on the Blue Energy (ASX: BUL) Monslatt production pilot wells have recommenced, with the project located around 200 kilometres north-west of Rockhampton.

Most importantly, there has been no damage to infrastructure at the Monslatt 4, 5, 7 and 8 wells.

Only access to Monslatt 6 is currently restricted.

At Monslatt 5 a gas field services rig is on location and is preparing the well bore for the drilling of multiple short radius/small bore lateral wells using high pressure water jetting technology.

Once completed, Blue Energy will then run down hole pumps and the well will be put on pilot production test.

Blue Energy said the short radius high pressure water jetting technique is being trialled to establish if these laterals will provide significantly enhanced net coal intersections for gas production, and therefore optimised gas production rates and minimised costs.

In late 2010, Monslatt 8 was successfully drilled to intersect the vertical Monslatt 7.

Down hole pumps have been run in Monslatt 7 and surface equipment has now been installed so that pilot production testing can commence by the end of the week.

The Monslatt Block of ATP 814 currently has 1,295 petajoules of recoverable 3C contingent resource, as independently identified by NSAI, together with a shale gas prospective resource of 3,630 petajoules of gas in place.

Importantly, the Monslatt Block is located in close proximity to significant coal mine infrastructure with large energy consumption potential.

Blue Energy defers completion of Monslatt pilot wells due to Queensland rain

Wed, 08 Dec 2010 16:14:00 +1100

Coal seam gas company Blue Energy (ASX: BUL) has deferred completion activities at the Monslatt pilot production wells due to heavy rainfall in the central Queensland area.

Access to the Monslatt 4, 5P, 6P, 7 and 8H well sites has been restricted due to flooded creek crossings and general poor road conditions.

In a statement the company said "the completion rig has been on location at Monslatt 7, and resumed operations this morning."

Also, equipment for the radial drilling program has been mobilized, but this work is subject to weather delays which impact the overall program.

The Monslatt Block is located within Blue Energy's fully owned ATP814P Bowen Basin project located in Queensland. No damage or loss has resulted from the flooding in the Monslatt area.

On November 10 Blue Energy successfully completed the drilling phase of the Monslatt 8H lateral well, which reached a total depth of 1,179 metres measured depth and intersected the Monslatt 7 vertical well.

Blue Energy to carry through Adelaide Energy in CSG drilling program at Maryborough Basin

Tue, 30 Nov 2010 13:24:00 +1100

Adelaide Energy (ASX: ADE) purchased three permits in Queensland’s Maryborough Basin in early 2010, and after extensive dealings with various native title groups and Queensland Government regulators, the purchase of the main permit (ATP 613P) has been completed.

Adelaide Energy expects the other two permits, ATP 674P and ATP 733P, also subject to the agreement, to follow shortly.

Blue Energy (ASX: BUL) carries Adelaide Energy through a 9 hole drilling program by farm-in, at the end of which Adelaide Energy will have a 25% interest in the permits.

Potential plays from the Maryborough Basin include coal seam gas, shale gas and tight conventional gas, with the forward plan to core wells and pilot wells as required to assess productivity of the Burrum Coal Measures

Carl Dorsch, managing director of Adelaide Energy, said “Now that this deal has closed, ADE is looking forward to the work program commencing in 2011 to establish the coal seam gas (CSG) potential of these permits - which are in a great address located close to the Gladstone LNG export hub.

"Thereafter the joint venture is keen to explore the deeper shale gas and tight gas potential of the area."

Blue Energy successfully completes drilling of Monslatt 8H lateral well

Wed, 10 Nov 2010 10:58:00 +1100

Queensland based coal seam gas company Blue Energy (ASX: BUL) has successfully completed the drilling phase of the Monslatt 8H lateral well, which reached a total depth of 1,179 metres measured depth and intersected the Monslatt 7 vertical well.

The Monslatt 7 vertical well will be used as the production bore for the lateral well.

Monslatt 8H also intersected a total of 340 metres of gas saturated net coal in the P Seam.

The next step for Blue Energy will be when a workover rig arrives later next week, which will focus on a radial drilling program at Monslatt.

The primary target for radial drilling is the Monslatt 6P well. Other rig work planned for this phase includes completions for pilot production on Monslatt 4, 5P, 6P and 7 wells.

Blue Energy drilling to test coal seam gas target at Monslatt 8H

Thu, 28 Oct 2010 11:16:00 +1100

Brisbane-based coal seam gas company Blue Energy (ASX: BUL) has updated drilling activities at the Monslatt Block within its fully owned ATP814P Bowen Basin project located in Queensland.

At Monslatt 8H the Dominion drilling rig 2 has drilled the vertical scouting well and acquired wireline logs to confirm the presence of the primary Moranbah Coal Measures P Seam target.

Operations were conducted to drill a lateral well from the same surface location and the well has been successfully deviated up to a maximum angle of 85 degrees.

Hole instability issues within the P Seam have been encountered and a sidetrack hole is being drilled around a portion of drill pipe left down hole at approximately 942 metres measured depth.

As of 6am this morning, the drill crew were running drill pipe in the hole prior to drilling ahead in the sidetrack hole. The surface location of this well is approximately 600 metres to the south east of the Monslatt 7 well.

In parallel to these operations, preparations are being finalised to undertake a radial drilling program in the existing Monslatt 4 and 6P vertical pilot wells prior to their completion as pilot producing wells.

This technology will deliver multiple small diameter inseam laterals which are intended to access several of the already identified gas bearing seams encountered in these existing pilot wells (including the P Seam).

This technique is being trialled to establish a cost effective method which accesses and drains multiple seams in a single vertical well without the need for more expensive conventional inseam drilling.

Blue Energy expects that operations on the radial drilling program will commence in mid November.

Blue Energy to drill the Monslatt 8H lateral well

Tue, 05 Oct 2010 08:01:00 +1100

Queensland based coal-seam company Blue Energy (ASX: BUL) has contracted the Dominion Drilling Rig 2 to drill the Monslatt 8H lateral well, which was spudded on 25 September 2010.

The well surface location is approximately 600 metres to the south east of the Monslatt 7 well, with the Monslatt 8H well designed to intersect the P Seam at an estimated depth of 430 metres, then remain in-seam and intersect the Monslatt 7 well bore, which will then be completed as a pilot production test well.

The P Seam has been intersected in the vertical well and its thickness confirmed at 7 metres.

Blue Energy estimates the remaining drilling time for the well, excluding weather delays, to be around 20 days.

Blue Energy completes air drilling at Monslatt with Titeline Energy

Fri, 17 Sep 2010 11:37:00 +1000

Queensland based coal seam gas company Blue Energy (ASX: BUL) announced that it has completed underbalanced air drilling operations on the Monslatt 6P and 7 wells with Titeline Energy Pty Ltd Rig 2.

Blue has also contracted the Dominion Drilling Rig 2 to drill the Monslatt 8H lateral well, which has a surface location approximately 700 metres to the south east of the Monslatt 7 well.

The Monslatt 8H well is designed to intersect the P Seam at a depth of 500 metres, then remain in seam and intersect the Monslatt 7 well bore, which will then be completed as a pilot production test well.

Operations on the Monslatt 8H well are expected to commence this weekend, and it is expected to take 3 weeks to drill the lateral and intersect the Monslatt 7 well bore.

Blue has previously announced the Monslatt 6P well flowed gas to the surface at the modest rate of 15,000 standard cubic feet per day from the P Seam, and the P Seam at Monlslatt 7 flowed gas to surface at 7,000 standard cubic feet per day, on a short term flow test.

Blue Energy reports free flowing gas from Monslatt 6 well

Fri, 27 Aug 2010 06:10:00 +1000

Brisbane-based coal seam gas company Blue Energy (ASX: BUL) has updated drilling activities at the Monslatt Block within its fully owned ATP814P Bowen Basin project located in Queensland.

The company has engaged Titeline Energy Pty Ltd to conduct under-balanced (air) drilling operations on Blue Energy’s Monslatt 6 and 7 pilot production wells.

Monslatt 6 and 7 were previously drilled to the top of the target P seam (Moranbah Coal Measures) and suspended to enable the P seam to be drilled under-balanced.

In a statement the company said the Titeline Rig 2 has commenced under-balanced operations and has drilled out the P seam in the Monslatt 6 well. The operations on the Monslatt 6 well have now established free flowing gas from the P seam.

John Phillips, chief executive officer, said this confirms the fully gas saturated nature of the P seam in this location, verifies the adsorption isotherm results from core analysis in the Monslatt 1A core hole and suggests a fully gas saturated P seam coal across the majority of the block.

The recorded gas rate is considered very modest at this early stage (approximately 15,000 standard cubic feet per day), but the company said it is very encouraged by the results and demonstrates that gas will freely flow from the coals.

The well will now be completed to allow for an extended production test to be conducted, with produced gas and water monitored for rate and quality.

In parallel to this activity, plans are well advanced to drill a “surface to in-seam” style lateral well in the Monslatt Block.

This well will establish the length of horizontal section required for economic flow from the P seam. It will also maximise the potential for fracture intersection and therefore the chance of enhanced gas flow form fracture permeability.

Blue Energy is in advanced negotiations to secure a suitable drilling rig and directional drilling team to undertake this well. It is expected that the well will commence in early to mid September this year.

Reserve certifier Netherland, Sewell and Associates (NSAI) have indicated that once an economic flow rate has been established they are likely to be in a position to certify 2P reserves from the current contingent resources within the Monslatt block.

On August 6 Blue Energy announced the conversion of a significant portion of the initial 3C resource estimate for the Monslatt area to the 2C category.

The company considered this is a significant milestone as it validates the geological model developed for the area by Blue Energy and also provides the company with additional focus to establish reserves in an timely manner at Monslatt.

Blue Energy director tops-up shareholding

Thu, 12 Aug 2010 08:34:00 +1000

Blue Energy (ASX: BUL) director Paul Massarotto acquired 300,000 ordinary shares in on market purchases on 6th August at $0.14 per share.

Currently, BUL is trading at 13.5 cents.

Blue Energy reports significant gas Resource upgrade at Monslatt Area

Fri, 06 Aug 2010 13:16:00 +1000

The conversion of a significant portion of the initial 3C resource estimate for the Monslatt area to the 2C category is a significant milestone for Blue Energy, providing the company with the impetus to establish reserves in the Bowen Basin project.

Blue Energy encouraged by coal intersections at Sapphire 3 CSG well

Thu, 22 Jul 2010 05:52:00 +1000

Coal seam gas company Blue Energy (ASX: BUL) has updated drilling activities at its fully owned ATP814P Bowen Basin project located in Queensland.

In a statement the company said the Sapphire 3 corehole well reached a total depth of 627 metres and has been plugged and abandoned as per plan.

Wireline logs were obtained and permeability testing conducted. The well intersected a total of 35 metres of net coal, in the Rangal and Fort Cooper Coal Measure sequences. Samples of these coals are currently still on desorption test to determine gas content.

John Phillips, chief executive officer, said this encouraging initial well result confirms the potential of this part of the permit which will be assessed further after drilling in the Central Block is completed. The rig has now moved to the Kerlong 1 corehole in the Central Block of ATP814P.

The Monslatt 6 well was drilled to a total depth of 520 metres in the Moranbah Coal Measures and has been cased and suspended pending the arrival an under-balanced drilling rig to drill the P seam target. Wireline logs and permeability data on the upper Moranbah Coal Measure seams have been acquired in Monslatt 6.

Production casing has been set at total depth, immediately above the main Moranbah “P” seam and a drilling rig capable of drilling with air will be mobilsed to site at the end of next week to drill the P seam, using under-balanced techniques, and production test the seam.

The Monslatt 7 Pilot Production well spudded on 7 July 2010 and was drilled to a total depth of 459 metres in the Moranbah Coal Measures. The well has been cased and suspended pending the arrival of the under-balanced drilling rig to drill the P seam target.

Wireline logs were acquired and permeability testing was conducted in the well prior to suspension. Production casing was run to a depth immediately above the Moranbah Coal Measure “P” seam.

The Atlas 3 drilling rig has now been released. The well will be re-entered using the alternative drilling rig and the main Moranbah Coal Measure “P” seam in Monslatt 7 will also be drilled with air and production tested.

The well is located in the central part of the Monslatt Block and approximately 200 metres north east of the Monslatt 4 well and 10 kilometres west of the township of Nebo.

Monslatt 7 is designed to obtain both permeability and production test data from the Moranbah Coal Measure coals and will assist in conversion of the 3,532PJ Contingent Resource Estimate obtained from NSAI to 2P and 3P Reserves.

The Kerlong 1 well, located approximately 25 kilometres east of Moranbah, spudded on 19 July 2010 and is currently at a depth of 87 metres and preparing to drill ahead, having run and set surface casing.

The well is designed to evaluate the Rangal Coal Measures at a location approximately 5 kilometres north of the producing Annandale CSG Field, operated by Arrow Energy (ASX: AOE).

Blue Energy extends KOGAS farmin option at Galilee Basin

Wed, 07 Jul 2010 12:07:00 +1000

Coal seam gas company Blue Energy (ASX: BUL) has agreed to a request from Korea Gas Corporation (KOGAS) to extend the expiry date on the farmin option at Galilee Basin by 8 months to 28 February 2011.

As part of the $12.571m share placement in Blue Energy made by KOGAS in August 2009, KOGAS was granted an option (expiring 30 June 2010) to farmin to Blue Energy’s 100% ownded Galilee Basin permit ATP813P and / or ATP814P in the northern Bowen Basin.

In the past twelve months Blue Energy has undertaken a significant amount of exploration in both permits and has supplied data sets to KOGAS for their internal review process.

John Philips, CEO and managing director, said ”Blue Energy is committed to working with KOGAS as a strategic partner and has agreed to their request for an extension."

"During the option extension period Blue Energy will continue to undertake exploration activities to further mature these assets and will provide KOGAS all necessary data to enable KOGAS to fully assess the permits with the aim of gaining KOGAS’ commitment to a farmin agreement in early 2011”.

In March 2010 Blue Energy received an initial gas in place resource estimate from Netherland, Sewell and Associates (NSAI) of 121PJ (2C), 3,411PJ (3C) and a Prospective Resource of 3,630PJ relating to the gas potential of the carbonaceous shales.

Blue Energy has continued exploration and appraisal activities aimed at the conversion of the 2C/3C resource estimates into certified 2P/3P reserves.

Production well drilling and testing is ongoing and the company expects updated data set will be provided to the reserves certifiers with the next month.

KOGAS requested an extension of farmin option period until 28 February 2011 because of the recent taxation uncertainty together with exploration delays associated with the severe flooding events that occurred between December 2009 and March 2010.

Blue Energy progresses CSG wells at Bowen Basin

Tue, 29 Jun 2010 13:03:00 +1000

Coal seam gas company Blue Energy (ASX: BUL) has updated drilling activities at its fully owned ATP814P Bowen Basin project located in Queensland.

In a statement the company said the Sapphire 3 corehole spudded on 19 June 2010 and as of this morning was at a depth of 454 metres and coring ahead in the Late Permian aged Rangal Coal Measures.

Sapphire 3 is designed to assess the Moranbah, Fort Cooper and Rangal Coal Measures immediately adjacent to Arrow Energy’s Moranbah Gas Project. The well is located approximately 25 kilometres north east of Moranbah.

The Monslatt 6 well spudded on 19 June 2010 and as of this morning was at a depth of 380 metres and drilling ahead in the Moranbah Coal Measures.

The well is located in the southern part of the Monslatt Block and approximately 11 kilometres south of the Monslatt 4 well and 15 kilometres south west of the township of Nebo.

The well is designed to obtain both permeability and production test data from the Moranbah Coal Measure coals and will assist in conversion of the 3,532PJ Contingent Resource Estimate obtained from NSAI to 2P and 3P Reserves.

Blue Energy has developed an extensive CSG exploration portfolio, with an asset base of eight CSG operated petroleum exploration permits. Blue Energy also has interests in conventional assets in the Cooper/Eromanga Basin.

Blue Energy appoints John Phillips as Managing Director

Mon, 28 Jun 2010 08:32:00 +1000

Coal seam gas (CSG) company Blue Energy (ASX: BUL), has today appointed John Phillips, Chief Executive Officer, as Managing Director of the company.

Peter Cockcroft, Chairman, said that Phillips brings considerable operating experience and industry knowledge to the Board.

Blue Energy appointed John Phillips as Chief Executive Officer in the March quarter. Previously, he was COO of successful CSG explorer, Sunshine Gas Limited.

Phillips remuneration as Managing Director remains unchanged from his remuneration package as Chief Executive Officer.

Blue Energy is strategically positioned with abundant CSG assets throughout Queensland to meet the rising demand for cleaner power.

The company has developed an extensive CSG exploration portfolio, with an asset base of eight CSG operated petroleum exploration permits. Blue Energy also has interests in conventional assets in the Cooper/Eromanga Basin.

Blue Energy director tops-up shareholding

Wed, 23 Jun 2010 14:10:00 +1000

Blue Energy (ASX: BUL) director Paul Massarroto acquired 100,000 ordinary shares in on market purchases on 22 June at $0.16 per share.

Currently, BUL is trading at $0.15.

Blue Energy updates coal seam gas exploration in Queensland

Thu, 17 Jun 2010 14:07:00 +1000

Coal seam gas company Blue Energy (ASX: BUL) has updated activities in both the Galilee and Bowen Basins located in Queensland.

At Galilee Basin (ATP813P) the Ballyneety 1 core hole has reached a total depth of 1,008 metres, has acquired wireline logs and will be plugged and suspended.

The well is located approximately 50 kilometres from the township of Aramac and was designed to assess the coal seam gas potential of the Permian aged Betts Creek Formation and Aramac Coal Measures.

Following completion of activities on the well, the rig will be mobilised to ATP814P to commence exploration activities in the Central Block.

Data from the initial Galilee Basin exploration phase will now be collated and interpreted prior to further decisions on the second exploration phase in the ATP813P.

At Bowen Basin (ATP814P) the Sapphire 2 core well has reached its target depth of 1,050 metres with Logging in progress.

Sapphire 2 is designed to assess the Moranbah, Fort Cooper and Rangal Coal Measures immediately adjacent to Arrow Energy’s (ASX: AOE) Moranbah Gas Project. The well is located approximately 25 kilometres north east of Moranbah.

The Monslatt 5 well has reached a total depth of 806 metres and has run 7” production casing after acquiring wireline logs.

The well is located in the northern part of the Monslatt Block and approximately 5 kilometres north of the Monslatt 4 well and 12 kilometres west of the township of Nebo.

The well is designed to obtain both permeability and production test data from the Moranbah Coal Measure coals and will assist in conversion of the 3,532PJ Contingent Resource Estimate obtained from NSAI to 2P and 3P Reserves.

Following completion of activities on Monslatt 5, the rig will move to the Monslatt 6 Pilot production well.

Blue Energy provides update on coal seam gas exploration

Thu, 03 Jun 2010 13:18:00 +1000

Coal seam gas company Blue Energy (ASX: BUL) has updated activities in both the Galilee and Bowen Basins located in Queensland.

At Galilee Basin (ATP813P) the Myross 1 core hole has been drilled to a total depth of 1,098 metres.

Wireline logs have been acquired and these are now being interpreted and consolidated into the regional geological framework for the area.

A total net coal thickness of 21 metres was intersected in the well and samples from these coals are currently still on desorption test to determine gas content.

The rig has been moved to the Ballyneety 1 CSG corehole which is located approximately 20 kilometres north east of the Myross 1 location.

The Ballyneety 1 core hole spudded on 30 May 2010 and is currently drilling ahead in the Jurassic section at a depth of 291 metres. The well is programmed to drill to a total depth of 1,070 metres.

At Bowen Basin (ATP814P) the Sapphire 2 well is currently at a depth of 614 metres and is coring ahead in the Moranbah Coal Measures.

The Monslatt 5 well spudded on 29 May 2010 and this morning was at a depth of 250 metres and preparing to drill out of 9 5/8”surface casing.

Blue Energy confirms Coal Seam Gas targets at Bowen Basin

Thu, 13 May 2010 08:40:00 +1000

Coal seam gas company Blue Energy (ASX: BUL) has updated activities in both the Galilee and Bowen Basins located in Queensland, confirming the presence of the target seams identified in the earlier Monslatt coring campaign.

In addition, the company has decided to withdraw from the Rossco discovery well and the Paprika and Cadenza farm-in wells in the Cooper Basin, South Australia.

At Galilee Basin (ATP813P) the Myross 1 core hole spudded on 3 May 2010 and is currently at a depth of 405 metres and drilling intermediate hole in the Jurassic section.

The well has a proposed total depth of 1,200 metres and will target the Permian Betts Creek and Aramac Coal Measure sequences. The well is located approximately 40 kilometres north east of the town of Aramac and is expected to take 3 weeks to drill.

At Bowen Basin (ATP814P) the Depco 29 rig has drilled Monslatt 5C stratigraphic hole to a total depth of 858 metres and has acquired wireline logs.

The company said the well has confirmed the presence of the target seams identified in the earlier Monslatt coring campaign and the wireline logs have identified approximately 40 metres of coal in the well.

Correlation of the seams intersected is consistent with Blue Energy’s current stratigraphic interpretation of the area.

The results of the Monslatt 5C well have also confirmed this area to be suitable to site the Monslatt 5 production pilot well (which will be drilled following the Monslatt 4 production pilot well).

The Monslatt 6C stratigraphic well spudded 10 May 2010 and is at a depth of 218 metres and running surface casing. Monslatt 6C is designed to establish stratigraphic control ahead of the proposed Monslatt 6 production pilot well.

The Atlas 3 drilling rig spudded the Monslatt 4 Pilot Production well at 01:00 hrs on 11 May 2010 and is currently at a depth of 202 metres with surface casing cemented and preparing to drill ahead the production hole to first testing point.

The well is designed to obtain permeability and production data from the Moranbah Coal Measure coals intersected in the Monslatt core holes and assist in conversion of the 3,532PJ Contingent Resource Estimate obtained from NSAI to 2P and 3P Reserves.

Blue Energy has recently conducted a review of a number of the company’s non-core conventional assets in the Cooper Basin, namely the Rossco discovery well and the Paprika and Cadenza farm-in wells, in respectively the Rossco, Paprika and Paranta Blocks in PEL 106.

Given the company’s focus on Coal Seam Gas, Blue Energy has, with the agreement of Great Artesian Oil and Gas Limited, the operator of PEL 106, decided to withdraw from each of these blocks without further obligations.

Blue Energy drilling at Queensland CSG wells on track

Mon, 03 May 2010 06:18:00 +1000

Blue Energy (ASX: BUL) has updated progress on its Coal Seam Gas (CSG) activities in both the Galilee and Bowen Basins located in Queensland.

The Stainburn Downs 1 well, within ATP813P Galilee Basin (BUL 100%), has reached a total depth of 1,200 metres and wireline logs have been acquired which have identified a total net coal intersection of 20.4 metres in the Betts creek and Aramac Coal Measures.

Coal samples are still on desorption test however early indications suggest that gas content from samples at Stainburn Downs 1 are in line with expectations and consistent with those previously reported from Blue Energy’s nearby Kanaka 1 well. The rig is now suspend and the rig moving to Myross 1.

The Monslatt 5C stratigraphic hole, located at ATP814P Bowen Basin (BUL 100%), spudded on Sunday 2 May 2010. The Depco 29 coring rig has mobilised to site.

The company said this well is designed to establish stratigraphic control ahead of the proposed Monslatt 5 production pilot well which is expected to spud in late May 2010 following completion of the Monslatt 4 pilot production well.

At the Monslatt 4 Pilot Production well the Atlas 3 drilling rig commenced mobilising to site on Friday 30 April 2010, and is expected to spud the Monslatt 4 pilot production well in the next 2 days.

The well is designed to obtain permeability of production data from the Moranbah Coal Measure coals intersected in the Monslatt core holes and assist in conversion of the 3,532PJ Contingent Resource Estimate obtained from NSAI to 2P and 3P Reserves.

Blue Energy is cashed-up for busy CSG drill program

Wed, 28 Apr 2010 11:15:00 +1000

Fresh from appointing a new CEO, inking an inital Resource Estimate for Monslatt, Blue Energy is cashed up with $32m to undertake a busy drill program.

Blue Energy recommences drilling at Stainburn Downs 1 well

Fri, 23 Apr 2010 11:58:00 +1000

Blue Energy (ASX: BUL) has updated drilling activities in both the Galilee and Bowen Basins areas located in Queensland.

Drilling has recommenced at the Galilee Basin (ATP813P) Stainburn Downs 1 well and is currently at a depth of 1,049 metres and preparing to core ahead in the Permian Betts Creek Beds (primary target).

The anticipated total depth for the well is 1,250 metres.

The Depco 29 coring rig will be mobilised to site at the Bowen Basin (ATP814P) Monslatt 5C stratigraphic hole in the week commencing 26 April 2010, with the Monslatt 5C well spud shortly thereafter.

This well is designed to establish stratigraphic control ahead of the proposed Monslatt 5 production pilot well which is expected to spud in late May 2010 following completion of the Monslatt 4 pilot production well.

The Atlas 3 drilling rig is due to mobilise to site at the Monslatt 4 Pilot Production well by 28 April 2010 and spud the well by 2 May 2010.

The well is designed to obtain permeability of production data from the Moranbah Coal Measure coals intersected in the Monslatt core holes and convert the current contingent resources in to reserves.

Blue Energy resumes drilling at Galilee, Bowen Basins gas prospects

Fri, 16 Apr 2010 08:15:00 +1000

Blue Energy (ASX: BUL) has recommenced operations in both the Galilee and Bowen Basins following a prolonged delay due to the recent widespread flooding in in Queensland.

Access to the Stainburn Downs 1 site (ATP813P Galilee Basin) was re-established last week and Boart Longyear 7 rig has been mobilised from the Ballangarry 1 well in the Surat Basin to the Stainburn Downs 1 location.

Following conditioning of the hole, operations have recommenced and the rig is preparing to core ahead at a depth of 982 metres in the Permian Betts Creek Beds (primary target). The anticipated total depth for the well is 1,250 metres.

Access to the Monslatt 6C area (ATP814P Bowen Basin) has been re-established in the last week and efforts are now being focussed at preparing locations for the upcoming Pilot well drilling campaign and further stratigraphic and coring activity in the Monslatt block.

The company expects that the Depco 29 coring rig will be mobilised to site in the week commencing 26 April and Monlsatt 6C will spud shortly thereafter. This well is designed to establish stratigraphic control ahead of the proposed Monslatt 6 production pilot well which is expected to spud in early May.

Access to the Sapphire 2 drilling location has been also been re-established and the lease is being re-conditioned following the recent flooding. It is planned that Depco 29 rig will move onto the Sapphire 2 location on completion of the Monslatt 6C & 5C stratigtraphic wells.

John Phillips, Chief Executive Officer, said this is likely to occur in early May 2010.

Sapphire 2 will target the Rangal, Fort Cooper and Moranbah Coal Measure sequences approximately 2.7km north east of the Sapphire 1 well drilled by Blue Energy in 2008. The location is 14km east of Arrow Energy’s Moranbah Gas Project.

The Ballangarry 1 well (ATP819P Surat Basin) reached a total depth of 602 metres in the Cretaceous Doncaster Formation. Wireline logs have been acquired and this data, together with desorption samples will be evaluated more fully in the coming weeks.

In accordance with plan, the well has been plugged and abandoned. The Boart Longyear 7 rig has mobilised to ATP813P to complete the Stainburn Downs CSG corehole.

Coal Seam Gas company Blue Energy appoints new CEO

Fri, 26 Mar 2010 07:29:00 +1100

Coal Seam Gas (CSG) explorer and developer Blue Energy (ASX: BUL) has promoted Chief Operating Officer John Phillips to the role of Chief Executive Officer, effective from 1 April 2010.

Blue Energy’s Chairman Peter Cockcroft, who will simultaneously relinquish executive duties, said Phillips’ appointment as CEO would provide additional leadership stability as the company pursued new growth opportunities and strengthen its governance structure.

Phillips, who joined Blue Energy in May 2009, has developed a deep understanding of the coal seam gas industry as a result of his experience while working with Conoco in the 1990’s through to his previous role as COO of successful CSG explorer Sunshine Gas.

The company's key objectives for next 12 months are to extensively drill out and obtain initial reserve certification in its assets ATP813P in the Galilee Basin & ATP814P in the Bowen Basin, located in Queensland.

The apointment follows the establishment of a gas resource for the Monslatt project area adjacent to Arrow Energy’s Moranbah Gas Project and also the execution of a MOU with Korea Gas Corporation (KOGAS) to investigate small scale LNG projects in eastern states.

Blue Energy and Korea's KOGAS ink LNG joint venture

Tue, 16 Mar 2010 11:42:00 +1100

Brisbane-based energy company Blue Energy (ASX: BUL) has inked a joint venture with Korea Gas Corporation (KOGAS) to investigate the feasibility of developing small scale Liquefied Natural Gas (LNG) and Compressed Natural Gas (CNG) projects within Eastern Australia.

KOGAS, a partner and shareholder in Blue Energy, has grown to become the world's largest single LNG importer. It is listed on the Korean Stock Exchange (KSE) with 2008 total revenue of A$24billion.

It has an option to farm into the company’s Galilee Basin (ATP813P) and northern Bowen Basin (ATP814P) permits.

With the current deal, Blue Energy and KOGAS will identify opportunities to develop and operate micro LNG and CNG facilities as a clean, environmentally friendly alternative to existing fuels such as diesel, petrol and LPG.

“The signing of the MOU with KOGAS is a significant achievement for Blue Energy. It is confirmation of the confidence in the company’s strategic direction, the quality of our assets and the expertise of our people,” Blue Energy chairman, Peter Cockcroft, said today.

Both companies share a vision for a “green highway” where environmentally friendly natural gas powered vehicles, both cars and trucks, can travel not hindered by fuel availability constraints up and down the east coast of Australia.

Korea has successfully built an increasing natural gas vehicle sector, currently with over 20,000 buses and trucks using natural gas as a fuel, either in the form of LNG or CNG.

There are obvious environmental advantages to these fuels, and KOGAS aims to utilise its experience and knowledge in this sector to assist Australia to utilise its vast onshore natural gas resources, particularly in Eastern Australia.

Blue Energy establishes initial resource at Monslatt Project

Mon, 15 Mar 2010 10:08:00 +1100

Queensland-based coal seam gas company Blue Energy (ASX: BUL) has received a boost with the establishment of an initial resource estimate for the Monslatt area of ATP814P.

Consultants, Netherland, Sewell and Associates released an initial resource estimate for the Monslatt Area of - 121PJ (2C Contingent Resource) and 3,411PJ (3C Contingent Resource).

Blue Energy chairman, Peter Cockcroft, said the establishment of the initial resource estimate for the Monslatt area was a significant milestone as the company maintained its short-to-medium term focus on establishing reserves, a producing asset and a revenue stream.

He said, “The recognition of this significant resource will require Blue to allocate appropriate resources to establish a series of pilot production wells in Monslatt."

The P1 seam at Monslatt is, on average, five metres thick and has gas content up to 23m3/tonne. In addition, recently received adsorption isotherm test results on the P1 seam at Monslatt indicate the P1 seam is fully gas saturated.

The other coal seams intersected in the drilling at Monslatt (up to 25 metres of total net coal) to date have been treated by NSAI as a 3C Contingent Resource. These seams will be investigated by a proposed pilot well drilling program to establish gas productivity and which will target the conversion of this 3C resource to a 2C or 2P category.

Activity will now focus on drilling several pilot production wells in the Monslatt block to convert the 2C/3C volumes into reserves (2P/3P).

Blue Energy is in advanced negotiations to secure a production drilling rig for this program and expects to commence drilling of the first pilot well by 1 April 2010.

A significant Prospective Resource (3,630PJ Gas in Place) has been identified by NSAI relating to the gas potential of the carbonaceous shales intersected in the Monslatt wells. These shales have yielded gas contents of up to 10m3/tonne. The production pilot well program will also target this sequence to establish the capacity of these shales to flow gas.

Production data would then be used to establish gas flow capacity and well productivity data from the Monslatt coals.

These data will be critical in establishing accurate recovery factors and commerciality tests for the project.

Mr Cockcroft said today the company's Monslatt project could well be analogous to the nearby Moranbah Gas Project operated by Arrow Energy (ASX:AOE), as Moranbah produces from the same coals found in our Monslatt block.

"The Gas in Place is similar to Moranbah, and it is not unreasonable to expect similar 2P and 3P reserves after positive results from our pilot and production wells in the next few months,” Mr Cockcroft said.

Data from Blue Energy’s Galilee Basin Project (ATP813P) will also shortly be forwarded to NSAI and is likely to significantly increase the company's resource base.

Blue Energy to optimise drill rig movements

Thu, 11 Mar 2010 13:28:00 +1100

Coal seam gas company, Blue Energy (ASX: BUL) has reported that significant rainfall and flooding events across Queensland since late January 2010 has affected drilling activities across the areas of operations in the Surat, Bowen and Galilee Basin.

As a result, gig movements have been optimised to ensure that the company can efficiently recommence drilling activity as specific areas become accessible.

ATP814P Bowen Basin (BUL 100%):

Sapphire 2: Access to the drilling location is expected to be re-established within the next week.

Once this occurs the Depco 1 drilling rig will be mobilised to site as soon as possible to commence drilling.

Sapphire 2 will target the Rangal, Fort Cooper and Moranbah Coal Measure sequences approximately 2.7km north east of the Sapphire 1 well drilled by Blue Energy in 2008. The location is only 14km east of Arrow Energy’s Moranbah Gas Project.

ATP813P Galilee Basin (BUL 100%):

Stainburn Downs 1: Access to the Galilee Basin acreage in general is still affected by recent flooding, and it is expected that access to the Stainburn downs 1 well (currently suspended at a depth of 980 metres) may be possible within the next two weeks.

ATP819P Surat Basin (BUL 100%):

Ballangarry 1: The Ballangarry 1 well spudded 27 February 2010 using Boart Longyear rig 7, and reached a depth of 253 metres, prior to ceasing operations due to flooding.

The well is located within an area protected by levy banks and therefore the rig was not inundated by floodwaters. However access into the area is still subject to floodwaters receding, and damage to roads in the general area may limit access for heavy trucks over the next week or so. Therefore it is not expected that operations to recommence at Ballangarry 1 for approximately two weeks.