Blue Energy (ASX: BLU) is set to expedite development of its Bowen Basin gas assets after receiving key development licences from the Queensland government. Blue Energy focuses on the exploration and development of gas resources. The company aims to supply critical new energy sources to the east coast of Australia.
Following progress in delineating resources and overcoming legal challenges, Blue Energy has been granted two Potential Commercial Areas (PCAs) and renewed its ATP 814 exploration permit. The new PCAs encompass the Lancewood and Central blocks within the ATP 814 permit zone. These blocks hold independently assessed recoverable gas resources of 573 petajoules (PJ) at Lancewood and 469PJ at the Central block.
The PCAs, each with a 12-year term, provide Blue Energy with ample time to advance appraisal work. The company intends to convert these gas resources into reserves, paving the way for a future commercialisation decision. These awards and the renewal of ATP 814 signal improved relations between Blue Energy and the Queensland government.
Earlier in April, Blue Energy secured a legal victory, enabling progression of its Sapphire gas development south of the new PCAs. The Land Court of Queensland granted an amended Environmental Authority (EA) to Blue Energy’s subsidiary, Eureka Petroleum, for petroleum activities in the Sapphire PL 1034 application area, resolving a dispute ongoing since July 2023. The finalisation of the amended EA allowed the Queensland government to grant a Petroleum Lease over the Sapphire Block.
