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The next phase of Sapphire

Sapphire block

Blue Energy is set to progress its Sapphire pilot well in the Sapphire Block, Queensland (QLD).

The Sapphire pilot well production test program is going through a pressure build up process. Following this, repair work on the oil cooling pump is scheduled to be completed by early November.

Blue Energy also increased Sapphire Block 2P reserves by 36 per cent and contingent resources by 19 per cent.

It also increased its 1C, 2C and 3C contingent resources by 11, 18 and 19 per cent to 171 PJ, 251 PJ and 256 PJ.

This now brings Sapphire 2P reserves to 80 per cent of total envisaged gas supply volume required under the non-binding memorandum of understanding (MoU) between Queensland Pacific Metals and Blue Energy.

Elsewhere, the company also lodged its second research and development (R&D) rebate claim with Austrade and the Australian Tax Office (ATO).

The initial R&D claim representing the Sapphire Pilot drilling planning phase expenditure incurred the 2021-2022 financial year was accepted by the ATO. Blue received the sum of $275,425 as the rebate for R&D eligible activity expenditure.

Now the second one has been lodged covering the larger quantum of drilling activity.

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