Blue Energy Limited report on the operations at the Sapphire Pilot drilling programme in ATP 814. Blue Energy advises that it has successfully completed the significant drilling program on the Sapphire Project successfully. The Silver City Drilling Rig #23 has now been de-mobilised and activities at Sapphire Pilot are now focussed on installation and commissioning of all surface facilities at Sapphire 5V and 6V to enable production testing to commence in the last week of November .

The Sapphire Pilot campaign drilled a total of approximately 14,000 metres of hole with a total of approximately 8,000 metres in horizontal section. 2 vertical water production wells drilled ­ Sapphire 5V and 6V Sapphire 5 L1, L2, L3 and L4 lateral wells successfully drilled and intersected with the Sapphire 5V vertical well. Sapphire 6 L1, L2 and L3 lateral wells been drilled and intersected the Sapphire 6V vertical well.

No Lost Time Injuries were recorded for the entire campaign.