Blue Energy Limited is pleased to provide the first of our weekly reports in respect to our drilling of the Company's Marburg oil prospect in ATP854P, Surat Basin, Central Queensland.
◾ Stage 1 funds of $2.5 million have been received
◾ Camp and lease construction complete
◾ Drilling rig mobilising to site and rigging up
As previously advised BUL has farmed out the drilling of the Marburg 1 oil well to KIB Energy Pte Ltd, a wholly owned subsidiary of a prominent and well respected private Singaporean oil trading company. As per the agreement the stage one funds have been received by Blue Energy which will fully cover the cost of drilling the Marburg 1 well. Following the drilling of the Marburg 1 well, Blue Energy and KIB Energy will determine whether or not to proceed to stage 2 of the farmout. If the companies elect to proceed to stage two, KIB Energy will contribute a further $2.5 million and earn a 20% interest in the Petroleum Production Lease Application and any subsequent Petroleum Production Lease. Blue Energy will maintain a 100% interest in the ATP854P exploration permit.