Blue Energy Limited (ASX: BLU) has announced that its wholly owned subsidiary, Eureka Petroleum Pty Ltd, has been granted Production Licence PL 1034 for the Sapphire project. The licence, awarded by the Department of Natural Resources, Mines, Manufacturing and Regional and Rural Development, is effective for a term of 20 years. Blue Energy is an Australian oil and gas exploration company focused on developing its significant gas resources in Queensland’s Bowen Basin. The company is committed to providing gas to both domestic and export markets.
PL 1034 allows Blue Energy to drill up to 117 wells under the development plan lodged with the application. This will facilitate the development of the estimated 91 petajoules (PJ) of 2P Reserves and 287 PJ of 3P Reserves contained within the coal seams of the Permian-aged sequence in PL 1034. These reserve estimates have been independently assessed by Netherland Sewell and Associates Inc (NSAI) of Dallas. The Sapphire project is strategically located adjacent to existing production licences and gas processing facilities in Moranbah, Central Queensland.
The company plans to process gas production from Sapphire at the Moranbah facility, negating the need for constructing stand-alone gas processing infrastructure. This proximity to existing infrastructure is expected to streamline the development process and reduce capital expenditure.
According to the amended Environmental Authority issued to Eureka Petroleum, Blue Energy must conduct several studies to ensure comprehensive regional acquifer data collection. This modelling will ensure that regional and local water bores are not negatively impacted by the Sapphire project’s development. The estimates of reserves noted in this announcement were provided by Mr John Hattner of Netherland, Sewell and Associates Inc (NSAI) and were last updated and announced to the market on October 11, 2023.
