Blue Energy (ASX: BUL) is a rapidly evolving energy exploration company strategically positioned with abundant coal seam gas (CSG) assets throughout Queensland to meet the rising demand for cleaner power.
Blue Energy has a vision to be Australia’s leading mid-sized coal seam gas exploration and production company with gas reserves in excess of 1 trillion cubic feet of gas within five years.
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 continues drilling program at Galilee Basin
Blue Energy (ASX: BUL) is undertaking a rapid drilling program at the Kanaka 1 Coal Seam Gas corehole in the company's Galilee Basin permit in Queensland.
The company, which was trading 2.4% higher at 21.5c following today's announcement, advised the market that the CSG corehole was currently at a depth of 94 metres and drilling 7 7/8” surface hole.
Kanaka 1 is the first in a 10 well corehole program to be conducted by Blue Energy in ATP813P to investigate the Coal Seam Gas (CSG) potential of the Permian aged Betts Creek Beds and Aramac Coal Measures.
The well is located approximately 30 km northwest of the township of Aramac in Central Queensland. AGL’s Glenaris pilot CSG project is located approximately 60 km to the southwest.
Blue Energy executive chairman Peter Cockcroft said the Galilee Basin was an emerging gas province and was experiencing a rapid increase in CSG drilling activity as operator’s who were successful in the 2008 gazettal round acreage release, begin their work programs.
"Whilst the Galilee Basin is remote and poorly serviced by gas infrastructure at present, it has the potential to rival the Surat Basin CSG province in terms
of gas resource and therefore could play a significant role in the re-emergence of Queensland’s gas industry," Mr Cockcroft said.
In other activity, the Monslatt 2 CSG core hole in ATP814P reached a total depth of 858 metres and has been cased and suspended as a potential monitoring
well. The rig has now moved to the Monslatt 1A location which is approximately 100 metres to the northwest of the Monslatt 1 stratigraphic well, which as reported previously was not able to be fully evaluated due to poor hole conditions. Monslatt 1A is designed to fully core the interval indentified from the Monslatt 1 cuttings as having significant CSG potential. Monslatt 1A spudded 16th November and is currently at a depth of 33 metres and drilling surface hole.
As previously reported, the Monslatt 2 corehole retrieved core from a 6 metre coal seam at a depth of 326 metres with preliminary gas desorption results (still underway) now yielding initial gas content of up to 14.5 m3/tonne (uncorrected for ash content).
It is interpreted that the well intersected a significant geological fault which has resulted in no additional coal intersections below that encountered at 326 metres.
Further analysis is being undertaken to better understand the structural setting of the Monslatt 2 well location.
