In September, Blue Energy closed its $A34.6 million equity raising, with money raised serving to speed up the company’s plans to appraise and develop its Queensland CSG explorations.
The company will apply the funds over the next 24 months to appraisal and drilling for the purpose of completing feasibility studies across the Bowen, Surat and Clarence/Moreton basins.
In particular, the funds will be used to acquire 2D seismic and commence core and pilot drilling within the company’s tenements, ATP 817, ATP 818, ATP 854. Blue has already identified CSG fairways in these tenements and considers them to hold significant potential for CSG developments.
Blue’s balance of $A26.6 million equity raising represents the second tranche of the raising announced on 18 July. Investment and funds management group CVC, the Chimaera Capital Group and significant investors have taken up the total raising of $A34.6 million.
The company owns a holding of 100 per cent interest in over 26,700 sq km of acreage across five basins in the east Australian gas market. It has said that its CSG resources contain significant emerging gas reserves which will provide the company with medium term capital growth.