Blue Energy (ASX:BLU) gains over 30% on ASX. Here’s why

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Blue Energy (ASX:BLU) gains over 30% on ASX. Here’s why

Blue Energy Limited (ASX:BLU), Bowen basin, Natural Gas Pipeline,energy  stocks, ASX
Image source: © Jimsphotos | Megapixl.com

Highlights

  • ASX:BLU shares are at their one-month high on ASX today, gaining over 30% in a day.
  • Blue Energy had proposed an appraisal drilling plan in 2022, in the North Bowen Basin.
  • A Federal infrastructure study now backs Bowen Basin development. 

ASX listed small cap energy explorer, Blue Energy Limited (ASX:BLU) shares have gained 26.08% on ASX today. As of 1:15 PM AEDT, BLU shares are trading at AU$0.058 each. BLU’s price has reached a month’s high, backed by high trading volumes today. BLU’s long standing stance on the Bowen basin development is now being backed by a government infrastructure study, which seeks a national gas pipeline infrastructure in the region.

Key highlights from federal report on Bowen basin development –

  • Both Federal and State Governments have endorsed the economies lying in the development of the Bowen Basin.
  • The report highlights that construction of gas pipeline infrastructure here favour energy security.
  • The infrastructure study has identified a clear need for additional gas production capacity with new gas basins in Australia.

Why is Blue energy positive about the government report?

  • The government study is released at a time when BLU has already proposed a 2022 appraisal drilling plans in the North Bowen Basin.
  • Blue Energy has already advanced drilling and shall soon receive a Production Licence by mid-2022.
  • According to Blue Energy’s management-

Data Source- Blue Energy Limited’s ASX release dated 6 January 2022

  • BLU has confirmed gas productivity in the region with gas supply agreements from Origin Energy, Energy Australia and QPM.
  • Blue has worked through Christmas for design finalization will be shortly inviting expressions of interest for drilling and directional serves.
  • BLU is also set to lodge application for Environmental authority approvals for the Production Licence.
  • In addition, it is also finalising a submission for Federal Government funding for Bowen basin drilling.

BLU’s road ahead -

Blue is finalising early-stage development activities in relation to a gas pipeline project in the Bowen basin, as part of the National Gas Infrastructure Plan. The government’s recently released infrastructure study may push BLU’s efforts in the region.

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