- Blue Energy (BLU) has entered a non-binding deal with EnergyAustralia to supply 100 petajoules of gas over 10 years from the Northern Bowen Basin in Queensland
- Importantly, this deal supports the proposed gas pipeline from the North Bowen Basin into the Wallumbilla hub
- The proposed pipeline will also allow gas from that part of the basin to be fed into the east coast market
- Managing Director, John Phillips, says the government’s acknowledgement of the North Bowen Basin’s gas potential is highly encouraging
- Company shares are up 23.2 per cent and are trading at 6.9 cents
Blue Energy (BLU) has entered a non-binding deal with EnergyAustralia to supply gas from Blue’s Northern Bowen Basin ATP814 coal seam gas tenure.
Specifically, Blue will supply 10 petajoules of gas per year, for a total of 100 petajoules over a 10-year period.
Importantly, this deal is significant as it supports the proposed gas pipeline from the North Bowen Basin into the Wallumbilla hub, and the development of Blue’s Bowen tenements.
The heads of agreement will also allow gas from the North Bowen Basin to be delivered into the main East Coast domestic market to the south from Moranbah, Queensland.
“It is very encouraging to see that the acknowledgement by the Federal and Queensland Governments of the gas potential in the North Bowen Basin has given gas buyers the confidence to seek to secure long term gas supply agreements for gas from this under-developed producing basin,” Managing Director John Phillips said.
The company’s independent reserves assessor, Netherland Sewell and Associates Inc of Dallas Texas (NSAI), has identified the areas where Blue can develop its resources and which align with Blue’s production licence applications that are being processed by the Queensland Government.
The ATP814 permit has been assessed by NSAI to contain 3248 petajoules of contingent resource around Moranbah. This means the 100 petajoules to be supplied under the agreement, represents just 3 per cent of Blue Energy’s total gas resource in the North Bowen Basin.
Additionally, there are currently 71 petajoules of 2P reserves and 298 petajoules of 3P reserves that are near the existing gas field infrastructure within the North Bowen Basin.
Company shares are up 23.2 per cent and are trading at 6.9 cents at 12:40 pm AEDT.