Blue Energy Spuds Sapphire Well

Blue Energy of Australia announced spudding of the Sapphire-4 core and pilot well on the Sapphire block of ATP814P, targeting the Bowen basin.

The spudding follows confirmation of a gas find at another well on the same permit, the company said in a statement on Thursday.

The move comes after tests at the Monslatt 9 coal bed methane well confirmed gas extensions at the southern end of the block, where little data existed, the company said.

Its drilling rig was en route to the Sapphire block, near the Arrow Energy-operated Moranbah power station – 1048 km north of Brisbane.

While the final core analysis is yet to be completed, high gas content of up to 25 cubic meters per tonne and coal seams of up to four meters thick indicated the well would add to existing reserves, the company said.

It has planned to expand from 3 to 6 Monslatt pilot production test wells by the end of the 2011, Blue Energy said.