Blue Energy Limited

June 2026 quarter: ATP 854 PCAs 180-183 (398 PJ) were granted, and Blue is seeking farm-in partners. Sapphire pilot testing was curtailed to preserve capital (gas flowing but not commercial rates), after Moranbah Gas Project's owner entered administration. Cash $3.62m (unaudited), no debt.

quarterly activities report

Queensland granted the four long-pending ATP 854 PCAs (180-183), covering 398 PJ of contingent gas near Roma and the Wallumbilla hub. This resolves the draft instruments reported in April and gives Blue a path to appraisal there.

regulatory community update

The share purchase plan was heavily oversubscribed, and the board upsized it to about $2.6m (521 million shares at $0.005) versus the $250,000 target. With the $3.2m placement, total raised is $5.8m, for the Sapphire pilot well and appraisal of PCAs 336, 337, 201 and 213.

capital raising announcement

Production Licence PL 1034 over Sapphire was granted for 20 years, allowing up to 117 wells to develop 91 PJ 2P and 287 PJ 3P. This resolves the long-awaited lease grant after the Land Court decision. Gas is earmarked for Moranbah processing.

regulatory community update

Blue raised $3.2m through a two-tranche placement of 640 million shares at $0.005, a 44.4% discount to the last close. Chairman Ellice-Flint committed $200,000, subject to approval. An SPP of up to $250,000 is planned. Funds go to Sapphire pilot well preparations and pipeline work.

capital raising announcement

Queensland awarded PCA 336 (Lancewood, 573 PJ 3C) and PCA 337 (Central, 469 PJ 3C) in ATP 814 for 12-year terms, and renewed ATP 814. This resolves two of the pending PCA applications and the permit renewal.

regulatory community update

The Land Court granted an amended Environmental Authority for Sapphire PL 1034 on 3 April 2025, ending the appeal running since July 2023. This resolves the open appeal and clears the way for the Petroleum Lease grant, with added water, flora and fauna conditions.

regulatory community update

An independent review found a drilling fluid additive (viscosifier) appears to have damaged the coal at Sapphire, impeding gas flow. Gas is 129 mscfd, below pre-drill expectation and the 200 mscfd Moranbah well average. A low-cost twin re-drill is being considered.

drilling result

Blue signed a non-binding Heads of Agreement with AGL for up to 300 PJ over 10 years at Wallumbilla, 20-30 PJ a year, indicative start 2028. Adds to the EnergyAustralia and Origin HOAs, but still no binding gas sales agreement.

material agreement

Blue received a $7.05m R&D tax rebate for FY23 and repaid the $1.951m R&Dium loan from it. Unaudited cash is $6.64m including the rebate. This is non-dilutive funding and leaves Blue debt free.

capital raising announcement

Blue lodged an R&D rebate claim of up to $7.0m and agreed a bridging facility of up to $1.9m with R&Dium Capital, secured on the rebate. Interest is 1.33% a month rising to 1.58% in 2024, repayable 29 February 2024, with no equity features.

debt financing

Executive Chairman John Ellice-Flint will become Non-Executive Chairman from 1 December 2023 on a $110,000 a year director's fee, and does not intend to stand for re-election at the 2024 AGM. Framed by the company as board succession planning.

director officer appointment

NSAI raised Sapphire Block 2P reserves 36% to 91 PJ and 3P 13% to 287 PJ. Contingent resources rose to 171 PJ 1C, 252 PJ 2C and 256 PJ 3C. This completes the Sapphire reassessment promised in July, and 2P now covers 80% of the QPM 112 PJ MoU volume.

resource reserve update

Blue and Origin refreshed their non-binding Heads of Agreement for up to 300 PJ over 10 years at Wallumbilla, 20-30 PJ a year, indicative start 2027, on terms similar to March 2021. Still non-binding and dependent on a Bowen pipeline being built.

material agreement

Qld Government declined all nine Potential Commercial Area applications over Blue's 100%-owned Galilee ATP 813, where NSAI estimated 838 PJ of 3C resource, saying it was not satisfied production would become viable within 15 years. Blue has 20 business days to appeal and is reviewing.

regulatory community update

A group linked to Lock the Gate has appealed in the Qld Land Court against the Environmental Authority granted for ATP 814, with Blue joined as a party; impact on Sapphire timing is not yet known. Pilot was shut in for pressure testing, with gas to resume about 20 September. Blue received a $275,425 R&D rebate.

regulatory community update

Darren Greer, an engineer with 24+ years in oil and gas (Santos, Woodside, Senex), joins the board as non-executive director on 17 August 2023. Deputy Chairman Rodney Cameron, a director for over 12 years, resigns effective 30 September 2023.

director officer appointment

NSAI raised Lancewood 3C to 573 PJ (+32%) and Central 3C to 469 PJ (+53%), but moved Central's 75 PJ of 3P to contingent after Blue switched those two licence applications to lower-tier PCAs. ATP 814 2P falls to 66.5 PJ, 3P to 260 PJ. Sapphire review due within weeks.

resource reserve update

Blue signed a non-binding MOU to supply Sapphire pilot gas "as available" into QPM Energy's Moranbah plant, 3 km from the pilot. This gives a route to sell pilot gas, separate from the existing 7 PJ/yr, 15-year Townsville MOU, which remains. Engineering on tie-in starts shortly.

material agreement

Continuous gas flow is now recorded at the Sapphire pilots, the first measured rate: about 20 mcfd (thousand cubic feet a day) from the Sapphire 6 laterals, which is very small. Blue is dewatering slowly (265 and 183 barrels of water a day) and expects gas rates to rise over coming months.

flow test result

Blue completed Sapphire pilot drilling: about 14,000 m of hole, about 8,000 m horizontal, 2 verticals and 7 laterals (5L1-L4, 6L1-L3), no lost-time injuries. The rig is released and production testing is due to start in the last week of November. No gas rates yet.

drilling result

Blue raised about $20 million from institutions at $0.062 per share (322,580,645 new shares), a 17.3% discount to last close. Proceeds fund a second Sapphire pilot well set ($8.0m), Surat Basin drilling ($5.3m), NT seismic ($3.6m) and working capital. Blue says no further raising is needed near to medium term.

capital raising announcement

Sapphire 5V reached 850 m total depth in 3.5 days, intersecting 45 m of net coal, 20% thicker than predicted, in the same seams as the adjacent Moranbah project. Casing is cemented. The rig moves to Sapphire 6V. Gas flow is not yet tested.

drilling result

NSAI upgraded the Sapphire Block (ATP814): 2P reserves up 13% to 66.5 PJ, 3P up 17% to 253.2 PJ, and 2C up 98% to 213.9 PJ. Company-wide 3C moves to 4,504 PJ in the July table. This is the first of the planned 2022 block reviews.

resource reserve update

Sapphire 5V spudded at 07:30 on 13 July 2022 after the rain delay. This is the first well of Blue's five-well ATP814 reserve-build program, which resolves the postponed spud.

drilling spud

Blue signed a drilling contract with Silver City Drilling for Rig #23 to drill the five-well ATP814 Sapphire program. This resolves the open contract thread. First well, Sapphire 5V, is expected to spud in the second week of June 2022.

contract award

NSAI lifted ATP854 (Surat Basin, 100%) contingent resources by about 300%, with 3C rising from 101 PJ to 398 PJ. Company-wide 3C rises 7% to 4,476 PJ. Blue says ATP854 gas could be an initial supply option for the Origin and EnergyAustralia agreements. Four PCA applications await approval.

resource reserve update

Blue raised about $10m through an institutional placement of 199,332,376 shares at $0.05, a 15.3% discount to the 30-day average price. Funds go to reserve-build drilling in ATP814 to firm up the gas agreements, plus Northern Territory seismic approvals. It ends the cash squeeze: cash was $1.95m at June.

capital raising announcement

Blue signed a second non-binding Heads of Agreement, with Origin Energy, for up to 300 PJ over 10 years (20-30 PJ a year) at Wallumbilla, indicative start 2024. Total gas under southern HOAs reaches 400 PJ with EnergyAustralia; still not binding.

material agreement

Blue signed a non-binding Heads of Agreement with EnergyAustralia to supply 100 PJ of gas at Wallumbilla over 10 years (10 PJ a year) from ATP814. It is Blue's first southern-market deal, following earlier northern MOUs, but it is not a binding sale contract.

material agreement

Blue signed a non-binding MOU with Stanmore Coal to capture and sell gas from its proposed Isaac Plains underground mine, where it overlaps Blue's ATP814P. A detailed agreement is still to be negotiated; adds possible gas volumes but no sales contract.

material agreement

Blue signed a non-binding MOU with Queensland Pacific Metals to supply gas to its proposed Townsville nickel refinery: indicative 7 PJ a year for 15 years, from the Sapphire Block. A second Townsville buyer after NQGP, but still not a binding gas sale agreement.

material agreement

Blue announced a non-binding-style MOU with the North Queensland Gas Pipeline owner Palisade to bring gas from the 216PJ 3P Sapphire Block of ATP814P to Townsville. First named market route alongside the southern PSL 2037 option. This version was later corrected.

material agreement

The share purchase plan closed with $1.42m of applications for 31,555,465 shares at $0.045, with no scale-back. Together with the placement, total raised is $5.6m, against the up-to-$2.5m SPP target.

capital raising announcement

Blue raised $4.2m through an oversubscribed placement of about 93.3m shares at $0.045, a 15.3% discount to the 10-day average price. A share purchase plan of up to $2.5m at the same price follows. Funds go to pipeline studies and licences, following cash falling to $1.44m.

capital raising announcement

NSAI added 237PJ of 3C contingent gas in the Hillalong Block of ATP814P, lifting Blue's total 3C to 4,179PJ (from 3,942PJ). 2P (71PJ) and 3P (298PJ) reserves are unchanged. Adds resource but no sale or pipeline yet.

resource reserve update

December 2018 quarter. Blue lodged a pipeline survey licence (PSL 2037) for a route from ATP814 towards Rolleston, and let the Maryborough permits lapse. NT work is suspended to February 2020. Gas sale talks continue; cash $1.78m, no debt.

quarterly activities report

June 2018 quarter. Long-standing holders Stanwell and KOGAS sold out (150.2m shares, 13.0%), with institutions such as Regal and IFM taking up the stock. Gas sale talks are 'frustratingly slow', no contract. Cash $2.7m at 30 June, down from $3.06m.

quarterly activities report

Blue raised about $2.0m net by placing 13,000,000 shares at $0.155 with IFM Investors, via Bell Potter. Funds bolster working capital, following cash of $2.54m at 30 June 2017 and the earlier going-concern uncertainty.

capital raising announcement

KOGAS nominee director Seungsoo Han and alternate Insu Woo resigned from the board. KOGAS cited difficulty taking part as Blue moves to commercialise gas, given its GLNG JV stake; it will not replace him but remains a significant shareholder.

director officer appointment

Blue signed a non-binding MoU with APA Group to negotiate a gas transportation agreement and have APA study a pipeline from the Bowen Basin to southern buyers. It advances Blue's pipeline-link idea; APA may build, own and operate. No binding deal or funding yet.

material agreement

Blue lodged an Initial Development Plan and Production Licence Application for the Sapphire block of ATP814P (100%) with the Queensland Government. This continues the Sapphire feasibility work; reserves are unchanged at 71PJ 2P and 298PJ 3P. Approval is still pending.

regulatory community update

EY's review of the half-year to 31 December 2016 finds no non-compliance but adds an emphasis of matter: material uncertainty that may cast significant doubt on Blue's ability to continue as a going concern, given its exploration commitments and cash.

half year report

September 2016 quarter. ANZ sold its Blue shareholding, removing the roughly 10% holder long seen as a share price overhang; the Executive Chairman increased his stake. Blue also began marketing ATP854P gas. No gas sale yet.

quarterly activities report

NSAI lifts ATP814P (Bowen, 100%) 2P reserves 29% to 71PJ and 3P 49% to 298PJ. 3C resource falls 13% to 3,011PJ for that permit. Delivers the upgrade flagged earlier; Blue says it is fielding multiple gas-buyer requests.

resource reserve update

NSAI raised ATP814P 3C contingent resource by 21% (657PJ) to 3,462PJ, with 1C up 30% and 2C up 27%. This delivers the long-awaited Bowen update. Portfolio total is now about 4,392PJ 3C, with 55PJ 2P and 200PJ 3P unchanged.

resource reserve update

September quarter: Galilee ATP813P 3C resource rises 54% to 838PJ after Stagmount 1 analysis, resolving that open thread. Group 3C total is now 3,744PJ. Cash is $8.0m, down from $9.0m. The ATP814P reserve update is still due by end of 2014.

quarterly activities report

Queensland granted Blue 100% of Cooper Basin permits ATP656P, 657P, 658P and 660P, covering 5,200km2, for initial 4-year terms from 1 July 2014. This resolves the pending grant; the area has had no exploration since the mid-1990s.

regulatory community update

CEO and Managing Director John Phillips' contract is extended two years on unchanged terms and salary. CFO/Company Secretary Stuart Owen leaves on 30 June 2014, and solicitor Damien Cronin takes over company secretarial duties from 1 July.

director officer appointment

Blue secured 100% of Maryborough permits ATP674P and ATP733P and reached an in-principle deal to buy Beach Energy's ATP613P interest. Total price is $2.5m over twelve months, replacing the earlier 75% earn-in. Binding documents for ATP613P are still to be signed.

asset acquisition disposition

Marburg 1 testing of the Precipice Sandstone (509-529m) found no producible hydrocarbons; the sandstone appears to hold very fresh water that mimics oil on logs. The well will be plugged and abandoned. This resolves the Marburg thread as a dry hole.

well test result

Stagmount 1 finished at 1,153m with 16 metres of coal; 10 core samples are in gas desorption testing. The well was handed to the landowner as a water bore. Results go to NSAI, which could raise the 544PJ 3C. The second well is paused until early 2014.

drilling result

Stagmount 1 spudded on 3 November 2013 in the wholly owned Galilee Basin ATP813P, the first of two wells. The pair could add up to 500PJ to the current 544PJ 3C. Planned depth is 1,185 metres.

drilling spud

Marburg 1 (685m) found good oil shows but a drill stem test recovered no hydrocarbons, and logs show a possible but uncertain oil column, possibly heavy oil in a pressure-depleted sandstone. The well is suspended for extended testing. Inconclusive, not a discovery.

drilling result

Marburg 1 spudded at 1pm on 13 October 2013 and was at 418 metres, running surface casing. Target is the Precipice Sandstone, with total depth about 720 metres. No result yet.

drilling spud

Blue farmed out 20% of the Marburg oil prospect to KIB Energy (Singapore) for a carry of the Marburg 1 drilling cost, within a $5.0m two-stage deal. Blue keeps 80%. This resolves the farm-out thread; spud is expected 9 October 2013.

farm in farm out agreement

Blue signed a binding term sheet to farm into nine Wiso Basin blocks (111,887km2) in the Northern Territory from Australian Oil and Gas, earning 50% over three stages. First two years are estimated to cost $3m. Only three of nine permits are granted so far.

farm in farm out agreement

John Ellice-Flint was made permanent Chairman, with no extra fee, resolving the chairman search. CEO John Phillips's contract was extended 12 months on unchanged terms. Cash was $17.1m at 31 May after an R&D tax refund.

director officer appointment

Contingent resources (3C) rose 25% to 3,481PJ after NSAI review. Monslatt rose to 1,711PJ, Lancewood received a maiden 439PJ, and ATP854P received 103PJ. Reserves are unchanged from the February figures of 50PJ 2P and 180PJ 3P.

resource reserve update

Blue booked maiden 2P reserves of 50PJ and lifted Sapphire Block 3P reserves 140% to 180PJ from 75PJ, per NSAI's annual review. The pilot wells have not yet reached commercial rates, so this is a certification gain. Other ATP814P blocks are to follow.

resource reserve update

Maryborough permits ATP674P and ATP733P (2,584km2) were granted, lifting the joint venture with Beach Energy to 2,984km2. Blue is earning a 75% interest and operates the farm-in work program. This resolves the pending grant thread; no gas has been found yet.

regulatory community update

Chairman Peter Cockcroft stood down immediately and will retire from the board on 31 December 2012. John Ellice-Flint becomes interim Chairman and Rod Cameron Deputy Chairman. Paul Massarotto retires at the 15 November AGM. KOGAS waives its nominee's director fees as part of cost savings.

director officer appointment

Blue confirms the mediated, confidential settlement of Odin's 2008 Federal Court claim over the Spinel Block, PEL 106, with proceedings dismissed. This closes the $4.5m-plus claim. Settlement cost is not disclosed.

other

Sapphire 4 began flowing gas almost immediately after pumping started. Monslatt 7/8H reached continuous gas flow, but below economic rate. KOGAS said it will exercise its ATP814P farm-in option, which starts non-exclusive talks. No terms have been discussed and no deal is certain. This resolves the open KOGAS option thread.

flow test result

Blue was named preferred tenderer for four Queensland exploration blocks, three in the Georgina Basin and one in the Carpentaria Basin, covering 31,280km2 at 100%. Native title agreements and environmental authorities are needed before grant. This adds a new shale gas and oil thread.

asset acquisition disposition

The Share Purchase Plan raised $17.6m, scaled back to $13.5m by the 30% placement-capacity limit (Rule 7.1), issuing 215.6m shares. With the approved $10m placement, this resolves the funding thread after cash fell to $5.3m. Ellice-Flint was elected Executive Director.

capital raising announcement

Blue secured a $10m placement of 160m shares at 6.25c, a 20% discount to the five-day VWAP, plus a Share Purchase Plan at the same price. John Ellice-Flint, ex-Santos MD, will join as Executive Director on $200,000 salary plus 41.2m shares and options. Subject to shareholder approval.

capital raising announcement

NSAI lifted Sapphire Block 3P reserves from 39PJ to 75PJ and 3C contingent resources from 284PJ to 326PJ, on Sapphire 4 results. Total 3C is now 2,788PJ. Pilot production testing is expected in the second quarter of 2012.

resource reserve update

NSAI raised Monslatt 3C contingent resource by 156PJ to 1,451PJ recoverable, following the Monslatt 9 well, and gas in place by 448PJ. This confirms the earlier hint that the well would lift resources. Monslatt 6P is stimulated; four Monslatt wells will be on test.

resource reserve update

Monslatt 9, a core and pilot well in the southern Monslatt Block, was due to start drilling, planned to 840m over about 21 days using Ensign Rig 60. Monslatt 7 gas flow has begun; commercial rates are needed before NSAI assigns 2P/3P reserves.

drilling spud

NSAI booked Blue's first reserves: 39PJ of 3P (possible only) in the Sapphire Block of ATP814P. Blue calls the number very modest. It is a start on converting contingent resources, targeted at the 6-10PJ a year supply MOU.

resource reserve update

NSAI assessed ATP813P in the Galilee Basin at 554PJ recoverable 3C contingent resource plus 1,142PJ recoverable prospective resource, on 3,407PJ gas in place. This covers about 25% of the permit and is the first resource booking after the 2010 drilling.

resource reserve update

Blue signed a non-binding MOU with an international electricity generator to supply 6-10PJ a year for 15-20 years from ATP814P for power generation. First gas-sales step; the company says it gives the economic framework to book reserves, but it is not binding.

material agreement

Blue placed 75 million shares at $0.08 to three institutions, raising $6 million, to fund establishing gas flows at Monslatt, Central and Sapphire. Mathews Capital Partners becomes a substantial holder above 5%. First raising flagged as open in the funding thread.

capital raising announcement

NSAI raised ATP814P 3C contingent resource about 60% to 2,063PJ recoverable (7,018PJ gas in place), adding 768PJ recoverable from the Sapphire and Central Blocks to Monslatt's 1,295PJ. Central Fort Cooper coals add 192PJ recoverable prospective resource.

resource reserve update

Monslatt 6 P seam flowed gas to surface at about 15,000 scf/day, a modest rate but showing the seam is gas saturated. A lateral well is planned for September. NSAI says it may certify 2P reserves once an economic flow rate is established.

flow test result

NSAI upgraded Monslatt: 2C rose to 1,206PJ from 121PJ, 3C fell to 1,937PJ, total contingent 3,143PJ (from 3,532PJ), with 1,295PJ recoverable. Also discloses a BBY claim for $2.082m, which Blue denies, and confirms Odin mediation failed and Stanwell's escrow ended.

resource reserve update

Blue agreed to KOGAS's request to extend its farm-in option over ATP813P and/or ATP814P by 8 months, from 30 June 2010 to 28 February 2011. KOGAS cited tax uncertainty and flood delays; Blue aims for a farm-in commitment in early 2011.

farm in farm out agreement

Blue is withdrawing, with operator Great Artesian Oil & Gas's agreement and no further obligations, from Rossco, Paprika and Paranta/Cadenza blocks in Cooper Basin PEL 106, citing its coal seam gas focus. Monslatt 4 pilot spudded 11 May; Myross 1 is at 405m.

asset acquisition disposition

COO John Phillips becomes CEO from 1 April 2010, ending the CEO search; Peter Cockcroft gives up executive duties but remains chairman. Aim is to drill out and seek initial reserve certification in ATP813P and ATP814P over the next 12 months.

director officer appointment

NSAI gives Monslatt (ATP814P) an initial gas-in-place resource: 121PJ 2C, 3,411PJ 3C and 3,630PJ prospective (shale). Not reserves yet; pilot wells are to start by 1 April. First independent resource figure for the Monslatt appraisal begun in December 2009.

resource reserve update

The board approved an accelerated Monslatt appraisal in ATP814P: up to 15 stratigraphic and core wells plus several pilot production wells, adding a Depco rig. Work starts in early March after flooding. A new Surat Basin well, Ballangarry 1 in ATP819P, is also planned.

drilling scheduled

Monslatt 1A reached 985m with 37m of gas-bearing coals and shales, coals up to 22 m3/tonne and shales up to 10 m3/tonne raw. Blue sees possible shale gas upside in ATP814P. Kanaka 1 finished at 1,300m with 24m of coal and gas up to 2.5 m3/tonne.

drilling result

Kanaka 1, the second well in the ATP813P program, cored over 25m of coal with gas up to 3.1 m3/tonne raw. Blue says this is consistent with its 2008 estimate of about 15 Tcf (P50) gas in place; the coals correlate with Carolina 1 about 70km away.

drilling result

Monslatt 1A in ATP814P has 29m of net coal, with samples up to 21 m3/tonne raw and 95%+ methane, above the roughly 15 m3/tonne reported at nearby Arrow. Blue is planning a pilot well and aims for reserves certification in early 2010.

drilling result

Monslatt 2 is coring at 545m. A 6m coal seam at 326m gave an early gas content of 12.5 m3/tonne after three days, uncorrected for ash, with about 92% methane. Blue is reassessing the ATP 814P drilling order.

drilling result

The board approved a 10-well coring program in the 100%-owned ATP 813P in the Galilee Basin, expected to start around 9 November 2009. Oakey Power 1 reached 497m and is being plugged. ATP 896P results are being analysed for pilot production merit.

drilling scheduled

Blue amended its Magellan farm-in: it will fund the native title process to get the Maryborough permits granted, in return for a 75% interest in ATP 613P, 674A and 733A (3,514 km2). It also relinquished ATP 859P because the Walloon coals are unlikely to sustain economic gas.

farm in farm out agreement

On 31 August 2009 the Victorian Supreme Court found the receiver's appointment to Primebroker invalid. ANZ has appealed, and the receiver has sought a declaration that it is valid. Blue says this creates uncertainty over the receiver's holding of its shares and is considering its options.

regulatory community update

Blue received the $12.571m KOGAS placement money, for 62.855m shares (10%). Cash is now $42m. A KOGAS director is expected in September, and a second coring rig for ATP 814P in October is in final negotiations. Completes the KOGAS placement.

capital raising announcement

The Takeovers Panel declined to conduct proceedings on Blue's application against the receiver and ANZ. It said the application was not made in a timely manner and had no reasonable prospect of a declaration of unacceptable circumstances. Blue's challenge to the receiver's holding fails.

regulatory community update

Blue applied to the Takeovers Panel over ANZ and the Primebroker receiver, who hold 20.07% of Blue. The receiver has threatened to call a meeting to remove two directors and the chairman. Blue seeks orders restraining voting and requiring a sell-down below 5% within 12 months.

regulatory community update

Rig 180 began the first of three Walloon coreholes in ATP 854P. Itude 1 spudded on 6 July, planned to about 250m. This starts the program funded by the $22.3m SPP, aimed at feeding data to reserve certifiers.

drilling spud

The binding KOGAS Share Placement Agreement was signed: $12.571m for 62.855m shares at 20c, giving KOGAS 10% and a board nomination right. Closing needs FIRB approval. This firms up the May heads of agreement.

capital raising announcement

Rig 180 is now expected to start in ATP 854P on 11 July 2009. Five coreholes in ATP 896P are confirmed, with three more planned in ATP 814P and ten in ATP 813P, aiming for continuous coring to June 2010. Blue says the SPP money fully funds this.

drilling scheduled

The share purchase plan closed having raised about $22.3m from over 2,200 applications, issuing about 118m shares at 18.94c. Blue says this plus cash and the KOGAS placement funds its work program for the next 18-24 months. Resolves the SPP thread.

capital raising announcement

Blue signed a non-binding Heads of Agreement with Korea's KOGAS: a private placement for 10% of Blue at 20c per share, a board seat, and an option to farm into ATP813P and/or ATP814P to 30 June 2010. Subject to board, FIRB and any shareholder approvals.

farm in farm out agreement

Blue signed Lucas Mitchell's Rig 180 for the shallow Walloon program in ATP 854P from June 2009: three firm wells, three options. The rig can drill core and production wells in other permits. Certification in ATP 854P is targeted by early 2010.

contract award

Blue plans a share purchase plan offering eligible shareholders up to $15,000 of shares (subject to waivers, otherwise $5,000) at the lesser of a 20% VWAP discount or 20 cents. The price is an 18% discount to the 29 April close. No total raise size is stated.

capital raising announcement

Blue completed stage one of its Magellan farm-in on ATP 613P, 674P and 733P and amended the deal. Blue becomes operator and can earn 75% (earlier context said up to 90%) via an agreed work program. P50 gas in place is 395PJ (about 372Bcf).

farm in farm out agreement

Blue extended $3m of convertible notes held by CQS for one year on the same terms, convertible at 25 cents. A further $0.5m of notes was repaid. CQS also took 12.5m one-year options at 20 cents, worth $2.5m if exercised.

debt financing

The board approved a shallow Walloons CSG project in ATP 854P: three wells in the June quarter 2009, a pilot later in the year, and gas certification targeted for Q1 2010. It targets an initial 300 PJ. This shifts focus from the deeper Bandanna coals tested at Cerulean.

drilling scheduled

CEO Bill Williams steps down in January 2009 but will consult on the farm-out; Chairman Cockcroft becomes executive chairman. Blue hires MBA Consulting to run a farm-out dataroom, and cuts senior staff and consultants as part of cost containment.

director officer appointment

Blue adopts a cash conservation approach, will seek farm-outs of some 100% CSG tenements, and aims to start reserves certification from January 2009. It drops the director options proposal. The receiver will hold the shares short to medium term and wants a board seat.

other

Odin Energy says it has terminated the Spinel Block farm-in agreement with Blue and demands return of the $4.5m it contributed. It has started legal proceedings. This puts the Spinel farm-in, where Odin held 25%, in dispute.

material agreement termination

Carolina #1 in ATP 813P intersected 21m gross pay (about 17m net coal) at 830-990m, with Betts Creek-type coals. Samples are producing gas. Results are within the range used for the 15,250 Bscf P50 GIP estimate, so it confirms rather than raises it.

drilling result

Blue says it will focus capital on projects with near-term revenue, citing the Stanwell deal, and advance a mini LNG plant proposal. It may farm out its 100% 800-series permits to conserve cash. Chairman Cockcroft takes an executive role to hit milestones by end-December 2008.

other

Sapphire #1 in the 100% ATP 814P (near Moranbah) found 71m of gross potential gas-bearing coal before stopping at 850m due to rig limits. Net coal of 20.3m matches the earlier GIP assumptions. Gas testing is pending; a follow-up well is planned if it confirms.

drilling result

Chairman Nick Stretch resigns as chairman and director. Peter Cockcroft becomes Acting Chairman. Stretch was the Chimaera representative, and Chimaera's shares are subject to the receiver's security claim. The board composition is under review.

director officer appointment

Cerulean #2 in ATP 854P flowed gas to surface strongly enough to support a flare. Water injection testing met its objectives. A work-over rig will fit a pump to measure gas rate. The tenement is one designated for the Stanwell supply.

flow test result

CVC sells its 87.28m Blue shares (19.9% holder) for 40c each, a 35.59% premium to the prior close of 29.5c. Its nominee directors Beard and Highland resign. CVC keeps its 5m options.

asset acquisition disposition

Queensland government-owned Stanwell buys CVC's 19.6% stake at 40c and signs a 25-year Alliance Agreement for up to 8.5PJ a year of Blue's gas (213PJ total) for a gas-fired power project. Stanwell funds development; Blue funds reserve certification. Blue keeps 100% of the tenements.

material agreement

Blue halted trading after Primebroker Securities went into receivership. Chimaera says 138.2m shares (31.1%) are under ANZ security, including 27.85m linked to director Oussa. Blue says it is fully funded and has no facility with Chimaera.

security holder rights change

Blue estimates gas-in-place of up to 21.3 Tcf (P50) across its Queensland coal seam gas tenements. About 2,390 Bscf sits in ATPs 814P West, 817P Central and 854P. These are prospective resources, not certified reserves; certification is the next goal.

resource reserve update

After 20 days of testing, gas desorption from Cerulean #1 coal supports a target area of about 250PJ of contingent resources around the Cerulean Block in ATP 854P, beside a high-pressure pipeline. Cerulean #2 and #3 are planned to test flow rates.

resource reserve update

Blue's first wells confirmed Bandanna coal in both tenements. Cerulean #1 (about 5m) and Cobalt #1 (about 3m) are in ATP 854P, and Azure #1 (about 5m) is in ATP 817P. More wells leading to production testing are planned near Azure #1 and Cerulean #1.

drilling result

Blue spuds Indigo #2, a core hole in ATP 818P, starting its six-month program of up to 15 CBM wells. It uses Depco Rig #26 to core the whole Walloon Coal Measures. A second rig is contracted for ATP 854P after Easter. First drilling on its own permits.

drilling spud

Bill Williams is confirmed as CEO, on $400,000 a year plus up to 10m options at 25c tied to share price hurdles of 40c, 70c and $1.00. Blue also signs the first of several drilling contracts, for up to 15 wells in five tenements over six months.

director officer appointment

Co-founder Sharif Oussa resigns as CEO with immediate effect but stays on as a non-executive director. Chief Commercial Officer Bill Williams becomes Acting CEO. The release gives no reason beyond praising Oussa's past year.

director officer appointment

Papua New Guinea grants Blue four offshore licences, PPLs 271-274, covering about 67,000 sq km in the Gulf of Papua. They were applied for in May 2005. The initial two-year work plan covers data reprocessing, remote sensing and some 2D seismic. This revives a PNG presence after the earlier PPL 248 withdrawal.

asset acquisition disposition

Chairman Norman Zillman retires, and Nicholas Stretch, a former Gadens Lawyers national chairman soon to join Chimaera Capital, joins the board as a non-executive director. The company says Zillman's objectives were achieved. Stretch later becomes chairman.

director officer appointment

Blue closes the second tranche of the CVC-led raising, $26.6m after shareholder approval on 14 September, completing the $34.6m total. Funds go over 24 months to seismic and core and pilot drilling in ATPs 817, 818 and 854. A Brisbane office opens with new technical managers.

capital raising announcement

Blue Energy agrees a package of up to $34.6m with CVC Limited: a $30m placement of 120m shares at 25c, plus conversion of Chimaera's $4.6m loan at 18c. CVC takes 19.9% and two board seats. The second tranche needs shareholder approval. This resolves the postponed raising and the debt.

capital raising announcement

Blue Energy farmed out part of the Spinel Block to Odin Energy, which will reimburse 100% of the $4.6m seismic cost. Odin paid a $2m deposit, with about $2.6m due after its ASX listing. Odin earns 25% via the four-well program; first well expected late July.

farm in farm out agreement

EIV arranged a loan facility of up to A$4.6m from Chimaera Capital, on terms it calls commercial, to fund its Cooper Basin and CBM programs. Spinel seismic is said to be 70% complete. Two four-well ATP 814 projects are programmed for June 2007.

debt financing

Burrum-2 reached 545 metres and was plugged and abandoned as planned. About 16 metres of net coal was cored, but three tests indicate low primary permeability. Gas potential is still under evaluation. A mixed first read on the Burrum program EIV is funding.

drilling result

EIV starts its 2007 CBM drilling program, spudding Burrum No. 1 in ATP 613P (earning 90% from Magellan). Drilling is planned in 100%-owned ATP 817P and 818P this year. CSM's deal grows to up to two four-well pilots, about $6m, for 50% of part of ATP 814P.

drilling spud

EIV signed a Heads of Agreement for CSM Energy to earn 50% of the Eastern Block of ATP 814P (Bowen Basin) by funding four CBM pilot wells. It is EIV's first farmout of its CBM acreage; work is due to start February 2007.

farm in farm out agreement

EIV closed its oversubscribed placement, raising $5.658 million through 37.7 million shares at 15 cents. It resolves the October raising, which had a $5.25m top end. Funds go to Cooper Basin expansion and CBM development.

capital raising announcement

EIV is placing 20-35 million shares at 15 cents to raise $3m-$5.25m, to fund Cooper Basin development and CBM work. Chairman Martino retires and Norm Zillman replaces him. Sharif Oussa becomes Managing Director, replacing Doherty, who stays as non-executive director.

capital raising announcement

EIV won an option to earn up to 70% of PNG licence PPL 248 by funding two exploration wells; the Banam Anticline has a potential 10 Tcf of gas at POS 50. EIV issues 4 million shares to SEGA if exercised, by 26 November 2006.

material agreement

EIV subsidiary Eureka agreed to fund a two-stage coal bed methane program at Magellan's Burrum Syncline (Maryborough Basin) to earn 90%. Stage 1 is two core wells, due by 31 December 2006; Magellan may back in for up to 50% if developed.

farm in farm out agreement

Rossco-1 flowed gas at about 4.2 million cubic feet a day with 100-150 barrels a day of condensate from the 27-9 sandstone. Two deeper zones tested flowed nothing. It partly resolves the January cased-hole testing; EIV holds 37.5% if commercial.

well test result

Paprika-1 will be cased and suspended as a potential gas/condensate producer, based on log interpretation of several net pay zones and hydrocarbon indications in a test. One test was a mis-run; no flow rate reported. Cased-hole testing follows in coming months.

drilling result

EIV confirms the Cadenza-1 gas discovery (about 1.5 MMcf/d), its fourth discovery after Nutmeg, Paranta-1 and Rossco-1. Everdue earns 50% of any production licence; Paprika-1 is expected to spud within 10 days.

drilling result

Great Artesian reports Cadenza-1 a new field gas discovery: gas flowed to surface at about 1.5 million cubic feet a day from 2691-2694 m in the first test. It resolves the pending log evaluation; the well, funded by EIV's Everdue, will be cased and suspended.

flow test result

EIV subsidiary Kompliment signed two farm-ins with Great Artesian in PEL 106: Paprika-1 well (37.5% interest, 30 BCF best estimate) and the Spinel Block 3D seismic and wells (up to 50%). Committed spend is $7.1–7.4m, up to $13–14m if all options exercised.

farm in farm out agreement

Cadenza-1 began drilling on 18 May 2006 and was at 206 m. Fully funded by EIV's Everdue; target 12–28 BCF, planned depth about 3100 m.

drilling spud

EIV subsidiary Everdue will fully fund the Cadenza-1 well in PEL 106, due to spud this month, targeting 12 (P50) to 28 (P10) BCF of gas. On a commercial discovery, Everdue and Great Artesian would each hold 50%.

farm in farm out agreement

Energy Investments' half-year to 31 December 2005 shows a loss of $167,606 on revenue of $326,821. Shareholders approved acquiring Blue Energy Pty Ltd on 17 February 2006 (acceptances for 100%). EIV raised $2.564m in September 2005 and lent Blue Energy $2.2m to fund its farm-ins with Great Artesian.

half year report

Rossco-1 in South Australia's Cooper Basin (PEL 106) reached 3050 m and is being cased and suspended as a potential gas/oil discovery after logs showed likely hydrocarbon zones. Cased-hole testing is planned later in the year; farminees funded the well.

drilling result