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 excited by high gas content in ATP814P
Brisbane-based energy exploration company Blue Energy (ASX: BUL) finished the December quarter with cash reserves of $39.9 million, with drilling underway in eastern ATP814P in the Bowen Basin.
ATP814P is the first well of a six well program within ATP814P in the Bowen Basin of central Queensland.
The Monslatt drilling program (3 wells) was to test for the presence and thickness of the Permian aged Moranbah Coal Measures in the eastern area of ATP814P.
The Monslatt 1A core well was drilled in early December 2009 and gas desorption results indicate high gas content in the region.
In total, 36 samples were placed on test, all of which desorbed gas with the highest yielding sample having reached 23.4m3/tonne of gas (on a raw basis) and 12 samples were in excess of 10m3/tonne. Methane content is 95% or better.
The samples are currently still desorbing gas and final results will be available during the first quarter of 2010.
Importantly, carbonaceous shales were intersected in the well with visible bleeding gas at surface. These shales have been specifically targeted for sampling in the Monslatt drilling campaign and subsequent wells and have yielded gas contents up to 10m3/tonne (raw).
Clearly, the identification of gaseous shales within the eastern block of ATP814P is a very welcome and exciting outcome for the $123 million-capped company.
As it has material implications for the potential resource base of this part of the permit. Further analysis of these results is being undertaken to assess the resource.
Given the high gas content and shale gas potential indentified in ATP814P, the company has extended its exploration program in the eastern block of ATP814P to test the lateral extent of the coals throughout the block.
This will allow the company to accelerate its reserves certification process with Netherlands Sewell & Associates (NSAI).
Planning for a pilot well has commenced and will be accelerated with the aim of achieving reserves certification by mid 2010.
The company plans to drill up to an additional fifteen (15) wells, predominately stratigraphic wells with strategically placed core and production wells, to be drilled in the eastern (Monslatt) block of ATP814P.
This program is designed to determine the lateral extent and thickness of the coals within the broader area of the block.
The first production test well in the area is expected to be drilled in early March 2010 with planning currently underway. The well is located approximately 20km west of the town of Nebo in central Queensland and approximately 50 kilometres north east of Arrow Energy’s Moranbah Gas Project.
The first well in the ATP813P (Galilee Basin) program, Kanaka 1, spudded on 16 November 2009. The well reached a total depth of 1,300 metres intersecting 25 metres of coal, including a 10 metre net coal seam at 1,136 meters.
Wireline logs were run and preliminary raw gas contents of up to 3.9m3/tonne have been obtained from coal sampled within the Betts Creek Formation.
These results are consistent with reported results from nearby operators and confirms the input parameters to Blue Energy’s probabilistically determined original gas in place estimate of approximately 15TCF (P50) announced in 2008.
