Blue Energy upgrades gas reserves in Sapphire block in Queensland

Sydney-listed Blue Energy has upgraded the estimates of gas reserves and resources in its 100% owned and operated Sapphire block, which is located in ATP 814 in the North Bowen basin, Queensland, it said on Octoner 11.

The upgrade is based on a report by Netherland Sewell and Associates (NSAI), which is based on new geological data from the company's 2022 drilling programme.

There has been an increase in 2P and 3P gas reserves of 36% and 13%, respectively, to 91 petajoules and 287 petajoules. The 1C, 2C and 3C contingent resource category has seen an increase of 11%, 18% and 19%, respectively, to 171 petajoules, 251 petajoules and 256 petajoules.

This latest reserve upgrade sees the Sapphire 2P reserve volumes building to 80% of the total contract volume envisaged in the non-binding Blue Energy - Queensland Pacific Metals MoU for the 15-year gas supply to their proposed Nickel refinery, initially executed in November 2019.

Blue Energy recently completed a drilling program in the Sapphire block, which involved drilling approximately 14,000 meters of hole, with around 8,000 meters in horizontal sections, as part of their coalbed methane (CBM) project.