To ensure no delays in gas transmission infrastructure from Blue Energy's (ASX: BUL) Galilee Basin coal seam gas prospect (ATP813P), a study has commenced to identify an optimal route for export locations on the Queensland coast.
Several gas pipeline routes are being assessed to export the project's potential LNG product, including to Gladstone. Appropriate regulatory survey licenses will be obtained to further accelerate the permitting process, once the preferred route is identified.
Blue Energy sees the study as a "key element along the path to commercialising this potentially significant future gas province", said Peter Cockcroft Executive Chairman of Blue Energy.
A 21 corehole drilling program will be underaken by Blue Energy across four ATP’s to commence in July 2009, including 10 coreholes in ATP 813P, which will gather basic geological data for the reserve certification process and assist in providing locations for pilot production wells.
Recently, Korean Gas Corporation announced it would acquire 10% of Blue Energy at 20 cents per share and form a strategic partnership with Blue Energy. KOGAS has an option to farmin to Blue Energy’s ATP813P in the Galilee Basin and ATP814P in the Northern Bowen Basin. KOGAS is the world's largest LNG importer.
Funds from the KOGAS placement, plus proceeds of the Share Purchase Plan (SPP) and existing cash reserves will enable Blue Energy to to move to first gas reserve certification in the second quarter of 2010.
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