Blue Energy Signs Gas MOU (Australia)
Blue Energy Limited announced that it has executed a Memorandum of Understanding (MOU) with an experienced and respected international electricity generator for the supply of 6 – 10PJ of gas per annum over a 15 – 20 year period.
It is envisaged that the gas will be supplied from Blue Energy’s ATP814P permit area near Moranbah in central Queensland and will be utilised for power generation.
Whilst the MOU is non-binding at this time, it reflects the initial stage in development of a potentially strategic relationship in the northern Bowen Basin.
Blue Energy’s ATP814P currently has 2,063PJ of recoverable 3C contingent resource (as independently identified by Netherland, Sewell and Associates (NSAI)) together with a shale gas prospective resource of 3,630PJ of gas in place (also as independently identified by NSAI), and this resource is located in close proximity to significant coal mine infrastructure with large energy consumption potential in and around Moranbah.
Execution of this MOU signifies a significant milestone in the path toward commercialisation of the gas resource in ATP814P. The MOU will also provide the economic framework with which reserves (under the SPE/PRMS definitions) can be attributed to ATP 814P.
Source: Blue Energy, May 24, 2011;