Blue Energy Upgrades CSG Resources for Queensland Asset

Blue Energy Limited on Tuesday announced a significant increase in Contingent Resources for the company’s 100%-owned ATP814P coal seam gas asset in the Bowen Basin, Queensland, Australia.

The upgrade follows an independent review of Blue Energy’s portfolio of assets by Dallas-based reserve certifier, Netherland Sewell and Associates (NSAI).

The NSAI upgrade for the ATP814P permit has increased the 3C resource category by 21% or 657 PJ (recoverable gas) to a total of 3,462PJ (3C).

In addition, the independent NSAI gas resource upgrade has also increased the sub-categories of 1C and 2C Contingent Resources for the permit by 30% and 27% respectively.

Blue Energy’s current net gas resource across the portfolio now stands at nearly 4,400 PJ of Contingent Resource, 55 PJ of 2P Reserves and 200 PJ of 3P Reserves, all of which are currently uncontracted.

The six separate blocks comprising ATP814P are surrounded by Arrow Energy’s existing Moranbah Gas Project and its proposed new gas development and export pipeline project presently undergoing a Front End Engineering and Design process to supply gas to the Gladstone LNG hub.

Blue Energy’s Managing Director, John Phillips, said progression of the Arrow project would allow Blue’s reserves and resources to access the Gladstone demand centre.

“Our latest resource upgrade for ATP814P comes at a time when there has been a rapid deterioration in the world oil price and many producers are facing material downgrades in reserves as a result,” Phillips said.

“Following start-up of the first LNG plant in Gladstone (QCLNG) and the historic first shipments of LNG cargos from the east coast over the Christmas/New Year break, demand for gas supply in Gladstone is set to increase exponentially in the coming 12 months as the other LNG plants (GLNG and APLNG) each reach production start-up mile stones,” he said.