The company told the market yesterday that it had executed the first of a number of drilling contracts for the six-month program being undertaken in the Surat and Bowen basins.

Also yesterday, the company announced that acting chief executive Bill Williams has been permanently appointed into the position.

"The confirmation of [Williams'] appointment as CEO signals to the market that the company has entered the next stage of its development," Blue chairman Nick Stretch said.

Blue Energy holds, or has joint venture interest in more than 28,000 square kilometres of Queensland exploration acreage, over 12 leases in the Bowen/Surat, Galilee, Clarence Moreton and Maryborough Basins, considered prospective for CSM and conventional petroleum.