Blue Energy Secures Major North Bowen Basin Gas Areas with 12-Year PCAs
Blue Energy’s subsidiary Eureka Petroleum has been granted two significant Potential Commercial Areas in Queensland’s North Bowen Basin, alongside a renewal of its ATP 814 exploration permit. These awards position the company to advance substantial gas resources toward production.
- Queensland Government awards PCA 336 and PCA 337 to Blue Energy’s subsidiary
- PCAs correspond to Lancewood and Central Blocks within ATP 814 permit
- Independent assessments estimate recoverable gas resources of 573 PJ and 469 PJ
- ATP 814 exploration permit renewed for an additional term
- 12-year PCA terms allow for resource appraisal and potential production licensing
Strategic Award of Potential Commercial Areas
Blue Energy Limited (ASX – BLU) has taken a significant step forward in its Queensland gas ambitions with the Queensland Department of Natural Resources and Mines awarding two Potential Commercial Areas (PCAs) to its wholly owned subsidiary, Eureka Petroleum Limited. The PCAs, numbered 336 and 337, correspond to the Lancewood and Central Blocks within the broader ATP 814 exploration permit, which has also been renewed for a further term. This dual recognition not only secures Blue Energy’s foothold in the North Bowen Basin but also extends the timeline for advancing these assets toward commercial production.
Substantial Gas Resources Underpinning Growth Potential
Independent evaluations by Netherland Sewell and Associates Inc have estimated recoverable gas resources of 573 petajoules (PJ) for the Lancewood Block (PCA 336) and 469 PJ for the Central Block (PCA 337). These figures represent contingent gas resources; significant volumes that, while not yet classified as reserves, hold promising potential pending further appraisal. The 12-year term of the PCAs is designed to provide ample time for Blue Energy to undertake detailed assessments and progress toward production licence applications.
Renewal of ATP 814 and Future Outlook
The renewal of the ATP 814 exploration permit complements the PCA awards, ensuring continuity of tenure over these key blocks. Blue Energy has confirmed that there is no new information materially affecting the previously announced contingent resource estimates from October 2023, reinforcing the stability of its resource base. The company’s next steps will likely focus on appraisal activities aimed at converting contingent resources into proven reserves, a critical milestone for unlocking value and attracting investment.
Implications for Queensland’s Gas Supply Landscape
With growing demand for domestic gas supply in Queensland and broader Australia, Blue Energy’s secured PCAs and renewed permit position it as a potential contributor to future energy needs. The sizeable gas volumes identified could support new supply options, subject to successful appraisal and regulatory approvals. Market watchers will be keen to monitor Blue Energy’s progress as it navigates the complex path from exploration to production.
Bottom Line?
Blue Energy’s PCA awards and permit renewal set the stage for a critical appraisal phase that could reshape its role in Queensland’s gas market.
Questions in the middle?
- What timeline does Blue Energy envision for converting contingent resources into reserves?
- How will Blue Energy finance the upcoming appraisal and development activities?
- What are the regulatory hurdles and market conditions that could impact production licence approvals?