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Blue Energy shares fire up over gas deal with Energy Australia

Business

Blue Energy shares jumped 55 per cent to 8 cents after it announced it had struck a deal that could provide the impetus for a new gas field in central Queensland.

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Blue announced the signing of non-binding heads of agreement with Energy Australia for the supply of 100 petajoules of gas over 10 years from its Northern Bowen Basin field.

Blue has significant uncommitted reserves in the field but needs a pipeline to get the gas to market.

In a statement to the ASX Blue said the agreement was a foundation volume that would contribute to getting gas from the field to the Wallumbilla gas hub.

Its permit area has been assessed to have 3248 petajoules recoverable around Moranbah. There is another 71 petajoules (proven and probable reserves) and another 298 petajoules (proven, possible, probable) close to existing gas field infrastructure.

Managing director John Phillips said it was encouraging to see that the acknowledgement by the Federal and State governments of the gas potential in the Northern Bowen Basin has given gas buyers the confidence to see to secure long term gas supply agreements.

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