In its latest quarterly results, Blue Energy has reported significant progress across its projects located in Queensland.
The Sapphire 5 and 6 pilot wells, located in the Bowen Basin, continue to be production tested with the aggregate gas flow rate from the Sapphire pilot, which is currently running at .0140 terajoules per day.
Blue Energy noted that an independent review was initiated to investigate the potential causes of the gas rates so far, and to formulate options to best optimise the gas flow rate across the Sapphire block.
The review identified a component of the drilling fluid program that appears to have damaged the coal interface during the drilling process, which has impeded the ability of the gas saturated coals to flow at the optimal rate.
In the Surat Basin, Blue has lodged applications over the ATP 854 permit area to allow the tenure to progress towards assessing and developing the potential gas development, first identified in its exploration drilling work.
Blue has 398 petajoules of contingent resources within the permit area. The gas resource is located near the centre of the CSG-LNG Surat Basin gas supply precinct and has gas pipeline infrastructure linking Wallumbilla to Gladstone.
The company is working with the Queensland Government to secure these applications.
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