Shares of Blue Energy (ASX:BLU) suffered a significant drop, plummeting as much as 15.8% to A$0.016, marking its worst performance since late September of the previous year.

The energy firm reports that the Queensland Department of Resources rejected granting nine potential commercial area licenses within the Galilee Basin.

The department explains its decision, citing that petroleum production within the Galilee Basin area is unlikely to become commercially feasible in the following 15 years.

A surge in trading activity was also recorded, with approximately 2.7 million shares exchanged in contrast to a 30-day average trading volume of 988,812 shares.

As of the latest market close, the shares of Blue Energy (ASX:BLU) have tumbled by 65.5% for the year-to-date.

Blue Energy is an energy company based in Australia that’s mainly involved in the exploration, evaluation and development of coal seam and conventional gas resources.