Blue Energy has announced an upgrade to its gas reserves and resources in the Sapphire Block (ATP814) in the northern Bowen Basin.

This latest upgrade sees the Sapphire 2P reserve volumes building to 80 per cent of the total contract volume envisaged in the non-binding MoU for a 15-year supply of gas to Queensland Pacific Metals’ planned Townsville battery metals plant (TECH).

Related: Financial backing comes together for TECH

Blue Energy also recently refreshed a heads of agreement with Origin Energy for the supply of up 300 PJ of gas over 10 years from the site.

Independent reserve and resource certifier Netherland Sewell and Associates produced the upgraded estimate for the Sapphire Block, located near Moranbah.

The review was based on new geological data from Blue Energy’s 2022 drilling program.

The upgraded estimate includes:

• Increase in 2P and 3P gas reserves of 36 per cent and 13 per cent respectively to 91 PJ and 287 PJ.
• Increase in 1C, 2C and 3C Contingent Resource category of 11 per cent, 18 per cent and 19 per cent respectively to 171 PJ, 251 PJ and 256 PJ.
• Increase in 3P+2C aggregate gas resource available of 16 per cent to 543 PJ of recoverable gas.

The Sapphire Pilot has been shut in to conduct a pressure buildup test, aimed at establishing well flow capacity, permeability and skin effects.

The operation is being contested in a Land Court case brought by the Environmental Defenders Office against the Department of Environment and Science regarding the granting of its Environmental Authority. The matter is listed for review on November 16.