ASX Questions Blue Energy’s Timing on Key Sapphire Licence Disclosure

Background on the Sapphire Project Licence

Blue Energy Limited, an ASX-listed oil and gas exploration company, has recently been under scrutiny by the Australian Securities Exchange (ASX) regarding the timing of its disclosure about the grant of Production Licence PL 1034. This licence covers the company’s 100% owned Sapphire gas project in Queensland and was awarded to its wholly owned subsidiary, Eureka Petroleum Pty Ltd. The licence grants Blue Energy the right to drill up to 117 wells over a 20-year term, marking a significant milestone for the company’s development plans.

The Disclosure Timeline and ASX Inquiry

Blue Energy lodged a Cleansing Notice on 8 September 2025, which referenced the anticipated grant of the Production Licence but did not confirm its formal issuance. The ASX raised questions about whether Blue Energy had delayed disclosure of material information, given that the official grant date recorded by the Queensland Government was 5 September 2025. The company responded by explaining that it did not receive formal notification or documentation of the grant until late afternoon on 8 September, after the Cleansing Notice had been released.

Administrative Delays and Internal Communications

The delay in formal notification was attributed to an administrative oversight, the official grant letter and licence documents were sent electronically to a former employee’s email address, which had been dormant for over a year. Blue Energy’s Managing Director only received informal confirmation via text message around midday on 8 September, and the official paperwork was not accessed until 4, 06pm that day. This sequence meant the company was not in possession of all relevant information at the time of the Cleansing Notice, but it had a genuine belief that the grant was imminent based on ongoing communications with the Queensland Department of Natural Resources, Mines, Manufacturing and Regional and Rural Development.

Compliance with Continuous Disclosure Obligations

Blue Energy emphasized its commitment to continuous disclosure and transparency. The company marked its Cleansing Notice as “Material” and included detailed background on the licence application process, including the resolution of a Land Court appeal and the satisfaction of Native Title and Environmental Authority requirements. The Board has authorized the company’s responses to the ASX inquiry, confirming that Blue Energy complied with Listing Rule 3.1 and the Corporations Act 2001. The company also clarified that no excluded information was withheld at the time of the Cleansing Notice.

Implications for Investors and Next Steps

The grant of PL 1034 is a pivotal development for Blue Energy’s Sapphire project, potentially unlocking significant drilling and production opportunities over the next two decades. However, the timing and manner of disclosure highlight the challenges companies face in managing regulatory communications, especially when administrative issues arise. Investors will be watching closely for Blue Energy’s forthcoming operational updates and any further commentary from the ASX on disclosure practices.