Blue Energy Spuds Itude 1 Well In ATP 854P, Australia

Published: 06-Jul-2009

By: Staff Writer Staff Writer Staff Writer

Blue Energy Limited (Blue Energy) said that Lucas – Mitchell Rig 180 arrived on location in ATP 854P over the weekend and has commenced operations on the first of three coal seam gas (CSG) coreholes to be drilled in the permit. The three wells will target the Walloon coal measure sequence which is known to be gas productive to the south east of the permit area.

The first well, Itude 1 which spudded on July 6, 2009, will be drilled to a total depth of around 250 meters and will fully core the Walloon coal measure sequence.

The township of Injune, around 25 kilometers to the north east of Itude 1, in central Queensland falls within ATP 854P. ATP 854P is also in close proximity to Bow Energy Limited’s (Bow Energy) Don Juan CSG prospect which Bow Energy has reported to contain 192 PJ’s of certified 3P reserves. The Taringa 1 well, operated by Santos Limited in the adjacent ATP 655P had reported gas flows from the Walloon coal measures.

The commencement of operations with Lucas-Mitchell Rig 180 marks the beginning of a fully funded extensive corehole drilling program aimed at acquiring basic geological data for a CSG reserves certification process across four of Blue Energy’s prospective permits in Queensland. Funding for this program was obtained from the recent successful share purchase plan conducted by the company which raised $22.3 million.