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BLUE ENERGY LIMITED

ASX: BUL

The data on Australian Shares.com is intended as a guide only and is compiled from information in the public domain. Data on this website should not be used to make an investment or trading decision.

Description

Blue Energy Limited ("Blue Energy") 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 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's headquarters are based in Brisbane, Australia, with an experienced board and technical team who have the necessary skills and experience to execute its exploration strategy.

Bowen Basin ATP 814P

ATP 814P consists of seven disconnected blocks covering the Bowen Basin from the south of Moranbah to Newlands. This area is one of the largest coal mining areas in Australia. The main targets for CSG exploration in the permit are the Late Permian coal sequences, namely the Rangal/Bandanna Coal Measures, Fort Cooper Coal Measures and Moranbah Coal Measures. All of these sequences occur variously within the blocks comprising ATP 814P. There is established CSG production from all these formations in the vicinity of ATP 814P, most notably the Moranbah Gas Project, operated by Arrow Energy. This permit has seen a high level of exploration activity in the last year by Blue Energy, with highly prospective coals of the Moranbah Coal Measure sequence being identified from initial drilling in the Monslatt Block near the township of Nebo. In addition, core holes have been drilled in the Central and Sapphire blocks.

Galilee Basin ATP 813P

ATP 813P covers a large area in the Galilee Basin in central west Queensland. The Galilee Basin is lacking in gas infrastructure and for this reason there has been little incentive in the past to explore for conventional gas. Previous exploration occurred in the 1970s and 80s for conventional oil and more recently through Enron and later Galilee Energy for Coal Seam Gas potential. The renewed interest in the Galilee Basin has occurred through the gazettal and award of large tracts of petroleum exploration acreage under the Petroleum and Gas legislation. This gazettal followed the successful gazettal process in the Surat and Bowen Basins where CSG developments have provided a level of exploration and development activity not seen before in Queensland.

Surat Basin ATP 818P

ATP 818P is comprised of a number of separate areas which have been grouped and designated as ATP 818P North and ATP 818P South. Blue Energy has shot 107 km of seismic in ATP 818P to date (Indigo seismic survey). The Indigo seismic survey identified a larger than expected area of Walloon Coal Measures at favourable depths. Subsequently the Indgio-2A well was drilled and encountered 3m of coal which confirmed the existence of sections of the Walloon Coal Measures in the northwest corner of the ATP. This area abuts Icon Energy Limited’s ATP 626P which has recently undergone exploration drilling with reported positive results and Commoron 1 well, which indicated 8-10m of coal. A review of the further work program is planned in the coming year.

Surat Basin ATP 896P

ATP 896P is located on the depositional margins of the Surat Basin sequence in close proximity to the proven Walloon CSG fairway in the Dalby area of south east Queensland. Together with the adjoining ATP 818P, the area was considered to be prospective for a Walloon CSG target. As part of the systematic exploration program of Blue Energy’s large acreage portfolio, and in consideration of this permit’s proximity to producing CSG fields, it was determined that the relatively shallow Walloon target in this permit should be an early focus for the exploration effort. A total of three Walloon CSG coreholes were drilled to acquire basic data on coal thickness, gas content and quality and permeability in the permit. Accordingly, the Orphan 1, Gone 1 and Oakey Power 1 core holes were drilled to assess the Walloon Coal Measure sequence in locations that would give a broad coverage of the permit. The wells were located on the westerly edge of the permit to leverage proximity to the Tipton West CSG Field operated by Arrow Energy.

Surat Basin ATP 854P

ATP 854P is located near the township of Injune in central Queensland. The Wallumbilla – Gladstone gas pipeline passes through the eastern portion of the permit, and gas discovered in this block is therefore well located to access this infrastructure and move gas either through to Gladstone, or back haul to Wallumbilla and into the south eastern Queensland, South Australian or Sydney gas markets. The results from last year’s drilling campaign (Itude 1, 2 & 3 CSG core holes) which targeted the Walloon Coal Measure CSG play were reviewed and as a result the company has refocused exploration in ATP 854P toward the Late Permian CSG play. The Walloon exploration program identified that the Jurassic coals were poorly developed and had low gas content in the Itude area of the permit and as such this play was likely to be presently sub-economic in this part of the permit. Geological work is continuing to establish if this play is feasible elsewhere in the permit.

Surat Basin ATP 817P

ATP 817P is comprised of 3 separate areas; ATP 817P North, ATP 817P Central and ATP 817P South all situated west of the Dennison Trough. Each of these areas are located near existing conventional and CSG fairways and existing pipeline infrastructure. Several operators are currently developing CSG fields in the Permian sequence, such as Santos’ Fairview Field and Origin’s Spring Gully Field. Blue Energy has drilled one statigraphic well and two exploration core wells in ATP 817P Central located approximately 55km north west of Injune, Queensland. These wells have established the presence of gas bearing Bandanna coal seams.

Surat Basin ATP 819P

ATP 819P is located north west of Goondiwindi in Queensland and has both conventional potential and deep CSG potential in the Walloon Coal Measure sequence. The potential for shale gas was also recognised and the Ballangarry 1 core well was drilled to determine this potential. The well was drilled to a total depth of 600 metres in the Cretaceous Bungil Formation. Several shale samples were obtained however only very low gas content readings were established. The forward plan for the block will include assessing the deep Walloon CSG potential but also further delineate conventional traps already identified on the existing seismic grid.

CONVENTIONAL OIL & GAS

Blue Energy is awaiting final award of its four conventional permits within Queensland which are located near the north-western boundary of the Cooper Basin within the Eromanga Basin. Preliminary geological mapping and review work continued on these properties which are the subject of Native Title negotiations. Native Title claim negotiations continued during the year and will be finalised prior to the formal granting of the Applications by the Queensland.

ATPs 656A, 657A, 658A and 660A are all on or close to migration pathways, out of the Cooper Basin, of the oil found at the Inland Oil Field. Successful wells are already located where structural and other geological trends encounter above-average permeability.

It is probable that the oil in the Inland Oil Field originated in the Permian coals of the Cooper Basin and migrated through one or more of the Blue Energy Permits. Blue Energy is focusing on areas down-dip to the Inland Oil Field, but up-dip to the Cooper Basin Permian zero edge, where regional structures may be more recent in age but may have not have been in existence during the main oil migration period. All four blocks are also close to or just beyond the zero edge of the Permian Cooper Basin source rocks and are expected to have Triassic reservoirs that could lie within the migration pathway of hydrocarbons escaping from the Cooper Basin. Triassic sediments are expected and may be the main conduit for oil migration from the underlying Permian to the south and east into the overlying Jurassic, Eromanga sediments to the west.

Blue Energy is confident that its proposed seismic programs are likely to identify oil prospects in this under-explored part of the basin.

Mine For

coal seam gas, oil, gas

Location of operation(s)

Queensland

Australian Basins

Cooper, Eromanga, Bowen, Galilee, Surat

Address

Level 3, 410 Queen St
BRISBANE, QLD, AUSTRALIA

Phone

(61 7) 3270 8800

Email

Website


Last Updated

21/04/2011

 

The data on Australian Shares.com is intended as a guide only and is provided purely as an indication of what information can be found through official announcements. Data on this website should not be used to make an investment or trading decision. All information should be carefully cross-checked against official sources for accuracy. The publisher (Intaanetto Pty Ltd) will not be held liable for any loss arising from the use of this website.