COMPANY ACTIVITY

Blue's prudent quarter

A LONG-STANDING method of conservative spending has placed Blue Energy ahead of the pack in the most recent flurry of cost cuts to hit the oil and gas sector.

Andrew Snelling

The junior ended its December quarter with $6.8 million, down $2.25 million over the six months since June 2014, with the company reporting that its spend remained on budget.

The company’s net operating cashflow came to $1.2 million while its exploration expenditure was $734,000.

Looking ahead, the company said it expected to spend $1.7 million in the June quarter, committing $200,000 to exploration and $1 million to the final instalment for its purchase of ATP674,733 through an acquisition of Beach Energy subsidiary, Australian Unconventional Gas.

The acreage provides more synergies with the nearby Gladstone LNG project, which could provide opportunities for Blue’s ATP814P acreage, which is surrounded by Arrow Energy’s Moranbah gas project, to supply the LNG project.

Blue reported a reserves upgrade for ATP814 of 657 petajoules of 3C recoverable gas subsequent to the December period, bringing reserves in the six blocks which make up the permit to 3462PJ (3C).

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