PERTH (miningweekly.com) – The share price of ASX-listed Blue Energy fell nearly 16% on Wednesday after the Queensland Department of Resources declined to grant the company nine potential commercial area (PCA) applications over its ATP813 project in the Galilee basin.
Blue had drilled six exploration core holes in the permit area, and an independent resource expert had estimated some 838 PJ of contingent resource in the tenure. Nine separate PCA applications were lodged in 2018 as a result of the gas discoveries in each of the six core holes drilled.
Blue told shareholders that the company’s economic assessment of the PCA areas suggested positive economic viability within the terms of the PCA’s based on the current gas prices, aggregated infrastructure constructions to connect to the east coast market, and using common user principles for gas pipeline access.
However, the Department of Resources has informed the junior company that it was not satisfied that petroleum production in the Galilee basin area covered by Blue’s proposed PCA applications would be likely to become commercially viable within the next 15 years, as allowed under the Petroleum and Gas Act.
Blue has 20 business days in which to appeal this decision, with the company telling shareholders it was reviewing the merits of this option.
Blue shares were at a low of 1.6c a share on Wednesday.