Blue Energy Limited declares the successful completion of the Sapphire #1 Core Well which intercepted 71 metres of gross potential pay confirming the presence of a significant amount of gas bearing coal.

Sapphire #1, located within the Western Area of ATP814P located north east of Moranbah QLD targeted the potentially thick and continuous Moranbah Coal Measures which are producing Coal Seam Gas (CSG) in the nearby Arrow Energy Moranbah gas fields and is located approximately 25 km from the Moranbah to Townsville gas pipeline.

Logging operations confirm that 71 metres of gross potential pay coal and carbonaceous material was encountered before drilling ceased at a depth of 850m due to rig limitations. Significant volumes of free gas have been produced from initial desorption of the 58 samples taken throughout the pay zones.

Blue Energy has previously reported a P50 Gas In Place (GIP) estimate for this area of 1,072Bscf (~1,126PJ). In deriving that estimate Blue Energy applied a minimum depth cut off of 300m, maximum depth of 1,100m and a 1.75 gr/cm3 density cut off.

Applying these criteria but with only 850m cut off, results in a net coal figure of 20.3m which is consistent with assumptions used by Blue Energy in deriving the GIP estimate for this area. The existence of deeper coals between 850m and the 1,100m maximum depth cut off is prognosed which would add substantially to the Company’s GIP estimates for this section of ATP814P.

Testing of gas content and composition will now be undertaken. Where the test results confirm the presence of high purity methane and, as already indicated, high gas contents, Blue Energy will follow-up with a further well designed to both confirm the presence of deeper coals and test the productive capability of the gas bearing zones.

Tags: Blue Energy Limited