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 establishes initial resource at Monslatt Project
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.
