Cambrex Corp. (CBM)

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Blue Energy gains momentum with Kanaka 1 Well results
by Proactive Investors

http://www.proactiveinvestors.com.au/companies/news/3730/blue-energy-gains-momentum-with-kanaka-1-well-results-3730.html

Blue Energy (ASX: BUL) received a confidence booster with news that Kanaka 1 - the second well of the Company’s extensive 11-well Galilee Basin exploration program in ATP 813P - had intersected and cored over 25m of gaseous coal containing up to 3.1 m3/t raw value gas in the Betts Creek Formation.

This is consistent with reported results from nearby operators and confirms Blue Energy’s probabilistically determined original gas in place estimate of approximately 15TCF (P50) announced in 2008.

Results from Kanaka 1, which has reached a depth of 1,189m on the western side of ATP 813P, are consistent with the initial estimate.

Kanaka 1 is the first in a 10 well corehole program to be conducted by Blue Energy in ATP813P to investigate the Coal Seam Gas (CSG) potential of the Permian aged Betts Creek Beds and Aramac Coal Measures.

The well is located approximately 30 km northwest of the township of Aramac in Central Queensland.

Blue Energy chairman Peter Cockcroft said the results from Kanaka 1 had provided increased confidence about the lateral extent of the Betts Creek coals, as they had now been correlated in the two wells some 70km apart.

“Our remaining nine exploration wells will aim to further substantiate our resource estimate over the next few months, which, if successful, will have the capacity to underpin the economics of a Liquefied Natural Gas (LNG) export development,” Mr Cockcroft said.

“Due to the depositional nature of these coals, we are hopeful that other Coal Seam Gas (CSG) operators in the Galilee Basin will record similar results, which will enhance the development of a large natural gas program from the Galilee Basin.”

Mr Cockcroft said Blue Energy was differentiated from other Coal Seam Gas companies by having Korea Gas Corporation (KOGAS) as a strategic shareholder.

“KOGAS is the first large LNG buyer to take an active position in Queensland‘s CSG sector and having them as a shareholder enhances Blue Energy’s ability to develop, transport and sell gas from the Galilee Basin if we are successful,” he said.

Mr Cockcroft said that the Kanaka #1 results represented an extremely positive step in an extensive exploration effort by Blue Energy and other Galilee Basin operators which hopefully will lead to an impressive resource base.