Blue Energy: CSG Reserves in Sapphire Block Increase, Australia

February 26, 2013

Blue Energy announced maiden 2P gas reserves of 50 Petajoules (PJ) and a 140% increase in its 3P gas reserves to 180PJ in the Company’s 100%- owned Sapphire Block in the Bowen Basin, Queensland.

The upgraded gas reserves follow an independent annual review of data associated with the Sapphire Block of ATP814P by Netherland, Sewell and Associates (NSAI). Further results of the annual reserve and resource review by NSAI (for the other blocks comprising ATP814P) will be conveyed to the market in the coming weeks, as they become available.

Blue Energy’s Sapphire Block of ATP814P is located immediately adjacent to Arrow Energy’s Moranbah Gas Project which currently supplies gas to Townsville users but is also targeted to provide feed gas for Arrow Energy’s proposed LNG export facility in Gladstone.

The following table highlights the upgraded Reserve and Resource figures for the Sapphire Block of ATP814P.

Blue Energy’s Managing Director, Mr John Phillips, said the upgrade demonstrates the tangible benefits of collaboration and data sharing between companies with adjacent acreage and operational synergies in Queensland.

“It also shows that the State can benefit through more rapid gas resource growth if a collaborative exchange of data can occur rather than being kept confidential by the companies and Government until becoming open file many years down the track,” Mr Phillips said.

The Company is continuing pilot testing operations within the Sapphire block aimed at further increasing the gas reserve base.

The improved Bowen Basin gas reserves position announced today follows the granting of two Maryborough Basin exploration permits in Queensland to Blue Energy and its joint venture partner, Beach Energy.

Last year, Blue Energy secured three large exploration blocks in the Queensland sector of the sparsely explored Georgina Basin, together with a fourth exploration block in the Carpentaria Basin in northern Queensland.

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LNG World News Staff, February 26, 2013; Image: Blue Energy