Blue Energy Limited has executed a non-binding Heads of Agreement (HOA) with EnergyAustralia for the supply of 100 petajoules (PJ) of gas at Wallumbilla over 10 years from Blue Energy’s Northern Bowen Basin ATP814 coal seam gas tenure.
It is the first such agreement that will allow North Bowen Basin gas to be delivered into the main East Coast domestic market to the south from Moranbah.
It is a foundation volume that will contribute to the underpinning of the proposed gas pipeline from the North Bowen Basin into the Wallumbilla ‘Hub’, and for the development of Blue Energy’s Bowen tenements.
Blue Energy’s independent reserves assessor, Netherland Sewell and Associates Inc of Dallas Texas (NSAI), has identified the areas where the company can develop its resources, and which coincide with the Production Licence Applications currently with the Queensland Government.
Blue Energy’s ATP814 permit has been assessed by NSAI to contain an estimated 3,248 PJ* of Contingent Resource (recoverable) around Moranbah.
In addition to this volume, there is currently 71 PJ of 2P reserves and 298 PJ of 3P reserves in close proximity to the existing gas field infrastructure in the North Bowen Basin.
Blue Energy’s Managing Director, John Phillips, commented: “It is very encouraging to see that the acknowledgement by the Federal and Queensland Governments of the gas potential in the North Bowen Basin has given gas buyers the confidence to seek to secure long term gas supply agreements for gas from this under-developed producing basin.”
*Listing Rule 5.42 Disclosure
