Blue Energy Raises Funds for Queensland CBM Projects

Australia's Blue Energy June 13 announced the completion of A$4.2mn ($2.9mn) placement to investors comprising about 93mn shares at A$0.045/share.

Blue Energy said it plans to use the funds to advance its coalbed methane (CBM) projects and activities primarily in the North Bowen Basin, in Queensland, and to prosecute the case to develop and connect this large basin-wide gas resource to the east coast gas network and industrial gas users.

“These funds will allow Blue to continue the push for the development of the North Bowen Basin gas resources to be connected to the east coast market and alleviate the persistent supply shortages for Industrial gas users, which federal and state governments, together with the ACCC, are seeking to resolve,” managing director John Phillips said.

Blue Energy’s exploration permit, ATP814P, consists of seven disconnected blocks in the Bowen Basin in an area ranging from south of Moranbah up to Newlands in the Northern Bowen Basin. According to the company's website, there is established CBM production in the vicinity of ATP814P, most notably the Moranbah gas project, operated by Arrow Energy.

Drilling undertaken by Blue Energy in the permit over the last year has focused on the Sapphire Block which is flanked by Arrow Energy’s production licences.