Blue Energy (ASX:BUL) Agreed Extension of KOGAS Farmin Option

Sydney, July 7, 2010 AEST (ABN Newswire) - Blue Energy Limited (ASX:BUL) has agreed to a request from Korea Gas Corporation (KOGAS)(SEO:036460) to extend the expiry date on the farmin option by 8 months to 28 February 2011.

As part of the A$12.571 million share placement in Blue Energy made by KOGAS in August 2009, KOGAS was granted an option to farmin to Blue Energy's Galiliee Basin permits in the northern Bowen Basin.

KOGAS requested an extension of the farmin option due to the recent taxation uncertainty and exploration delays associated with the severe flooding events occurred between December 2009 and March 2010.

Blue Energy says it is committed to working with KOGAS as a strategic partner and has agreed to the request.

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Michelle Liang Asia Business News Asia Bureau Tel: +61-2-9247-4344 Email: michelle.liang@abnnewswire.net