Blue Energy Acquires Full Stake in Three Queensland Permits With Shale Gas Potential
Blue Energy has secured a 100 % interest of ATP674P and ATP733P in Queensland, Australia.
The company has also reached an in principle agreement with Australian Unconventional Gas Pty Ltd (a wholly owned subsidiary of Beach Energy) to acquire the whole of Beach’s interest in ATP613P in the Maryborough Basin, Queensland, subject to binding documentation which is expected to be entered into by the parties shortly, Blue Energy said in a statement.
Blue Energy had previously been earning a 75% interest from Beach in these three Maryborough Basin permits by conducting a farmin work program in the permits, which cover an area of 2,940 km2 (726,486 acres).
“Blue Energy and Beach have entered into a Sale and Purchase Agreement in relation to ATP674P and ATP733P . Following completion of the binding documents for ATP613P, Blue Energy will fully acquire the three permits for a total payment of $2.5 million to be paid in three payments over a twelve month period. The sale of ATP674P and ATP733P is conditional on the standard Queensland Government approvals and other third party consents,” the statement said.
Blue Energy intends to conduct exploration activities in the Maryborough Basin permits targeting gas potential in the Cretaceous aged rocks known to occur in the basin. Given their location, any gas resource discovered in these permits will be ideally suited for both domestic (proximity to Brisbane) and export gas markets (150 km south of Gladstone).
Previous drilling activity in the Maryborough Basin, conducted between 1953 and 2003 targeting conventional gas, established a valid shale gas target within the Cretaceous-aged marine shales of the Maryborough Formation. This formation is up to 2,000 metres in thickness and is known to occur at depths of up to 3,000m below surface.
Recent analysis of global shale gas potential released by the US Energy Information Administration (EIA) in June 2013 has again identified the Maryborough Basin in Queensland as one of six sedimentary basins in Australia which are currently assessed to have significant shale gas potential, the company said.
Blue Energy is assessing all potential gas targets, with a view to determining a viable drilling location.
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