Blue Energy Grants KOGAS Extension of Farm-in Option Over ATP813P and ATP814P (Australia)

Blue Energy Limited advises that it has agreed to a request from Korea Gas Corporation (KOGAS) to further extend the expiry date on its farm-in option over ATP813P (Galilee Basin) and ATP814P (Bowen Basin) to 28 February 2012.

Given the operational delays experienced in Blue Energy’s ATP814P exploration activities, caused by the extensive flooding and cyclonic activity, KOGAS requested the extension of farm-in option period until 28 February 2012.

Background

As part of the $12.571m share placement in Blue Energy made by KOGAS in August 2009, KOGAS was granted an option (initially expiring 30 June 2010) to farm-in to Blue Energy’s Galiliee Basin permit ATP813P and / or ATP814P in the northern Bowen Basin. Upon request from KOGAS in June 2010, Blue Energy granted an extension to this original option until 28 February 2011.

KOGAS is a 15% equity participant in the two train 7.8 mtpa GLNG project which reached milestone final investment decision from the Santos led consortium in January of this year. KOGAS has also executed offtake agreements from the GLNG project for 3.5 mtpa over 20 years. First LNG exports from GLNG are expected in 2015.

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Source: Blue Energy, March 3, 2011;