Blue Energy to start drilling

A drill rig testing for coal seam gas near Moranbah in Central Queensland for Blue Energy.

BLUE Energy is expected to start drilling to establish the potential for coal seam gas in the region next year.

Fraser Coast councillor Gerard O'Connell welcomed the news, saying he hoped they would make an investment in the area that led to job creation.

“If people want to make an investment to create employment I want to talk to them seriously but I also want them to do it with due care... ” he said.

The Maryborough basin exploration area covers almost 3500 sq km encompassing parts of Hervey Bay, Maryborough, Burrum Heads and Howard.

The region has a long underground coal mining history that dates back to 1863 when coal was accidentally discovered on the banks of the Burrum River.

Last month, Adelaide Energy announced it had finalised the purchase of a stake in the main exploration permit of the Maryborough Basin and expected to complete the purchase of the other two permits shortly.

Adelaide Energy managing director Carl Dorsch said he was looking forward to work starting next year to establish the coal seam gas potential of the permits “which are in a great address located close to the Gladstone LNG export hub”.

“Thereafter the joint venture is keen to explore the deeper shale gas and tight gas potential of the area,” he said.

Blue Energy said a gas pipeline ran through the permit area directly from Gladstone.

In its 2010 annual report, the company said it had secured Native Title Agreements with both the Butchulla groups and Port Curtis Coral Coast people and was waiting for the State Government to award permits.

“Once awarded, Blue energy will continue the exploration work program required under its farm-in agreement,” it said.

“On the completion of the work program, Blue will earn a 75 per cent interest in all the Maryborough Basin acreage.”