As part of the investment, Energy Investments recently funded, via secured investment convertible investment loans, farm-ins worth A$2.2 million, in which Blue Energy joins two Great Artesian Oil & Gas exploration projects in Cooper Basin permit PEL 106.

These joint ventures represent the first financing by Energy Investments in the Cooper Basin, the company said.

Blue Energy’s assets also include a portfolio of nine coalbed methane and conventional oil and gas project areas adjacent to pipelines and/or markets in Queensland.

“Energy Investments has also established strategies to enhance the value of the Blue Energy CBM projects, [which] will be the subject of further announcements,” managing director Shane Doherty said.

“[The company’s] strategic plan centres on continuing to build on these significant foundations established in the past year for the benefit and enhancement of shareholders value.”

The PEL 106 farmin meant Energy Investments had secured interests in two gas discoveries and had the capacity for potential production in an existing proven hydrocarbon area, it said.

Under the first farmin agreement, Blue Energy's wholly owned subsidiary Everdue has provided $850,000 to fund the acquisition of about 80 square kilometres of 3D seismic data across the Paranta farmin block in PEL 106. This block contains the existing Paranta-1 and Nutmeg-1 gas discoveries made in 2004 by Great Artesian.

Following the acquisition and interpretation of the 3D seismic data, Everdue will have until March 31 next year to elect whether to fully fund an exploration well within the area to earn a 50% interest in any production licence resulting from a commercial discovery.

Everdue will also have options to drill subsequent farmin wells on similar terms in the Paranta Farmin block, Energy Investments said.

The second farmin agreement involves Blue Energy's wholly owned Kompliment Pty Ltd funding 75% of the Rossco-1 well, scheduled for drilling in late November to early December, in order to earn a 37.5% interest in any production licence if that well makes a commercial discovery.

Rossco-1 is about 5km north of the Smegsy-1 gas/condensate field and 4 km south of the Paranta-1 gas/condensate discovery in PEL 106.

It will target similar Patchawarra Formation sandstone reservoirs in a structure with the potential to host about 27 billion cubic feet of gas (P10), Energy Investments said.