Blue Energy Limited announced that the Queensland Department of Natural Resources and Mines has awarded two Potential Commercial Areas—PCA 336 and PCA 337—to its wholly owned subsidiary, Eureka Petroleum Limited. These areas, located in the North Bowen Basin within ATP 814, encompass the Lancewood and Central Blocks and have been independently assessed as containing significant recoverable gas resources. The Lancewood block is estimated to have 573 petajoules (PJ) of Continent gas resource, while the Central block is estimated at 469 PJ. The company confirmed that the underlying exploration permit, ATP 814, has been renewed for an additional term, and both PCAs have been granted a 12-year period. This extended timeframe has been designed to allow for a comprehensive appraisal of the gas resources, with an eventual view towards converting these contingent resources into gas reserves. The development is expected to support future applications for production licenses, thereby enhancing the company’s portfolio of gas supply opportunities. Blue Energy Limited noted that the technical parameters and material assumptions underpinning the previous contingent gas resource estimates, as originally announced on 11 October 2023, remain unchanged. The estimates for the Central and Lancewood blocks were derived using the SPE/PRMS method and provided detailed figures for different levels of reserve classification. Such data reinforces the potential of the gas resource base within ATP 814 as the company moves forward with further assessments and evaluations. Bullish sentiment arises from the strategic extension of exploration rights and the substantial volume of gas resources identified. The long-term PCA awards and renewed permit suggest a stable regulatory environment and provide the company with ample time to transition from resource appraisal to production license applications, potentially boosting future gas supply initiatives. Conversely, bearish concerns may center on the inherent uncertainties in converting estimated contingent resources into commercially viable gas reserves, the risks associated with appraisal outcomes, and the longer-term nature of such development projects before any tangible production benefits are realized.