In September 2007 he started recording his twelfth studio album, "Out in the Blue". Produced by Nash Chambers, it was released on 14 November and debuted at number 3 on the ARIA chart. The songs were written while he recovered from his heart surgery, and displayed a more subdued mood than much of his previous output. "When Two Hearts Collide" was a duet with Kasey Chambers. The album was promoted with a performance at the Sydney Opera House, which was released on CD and DVD. In March 2008, Barnes appeared as a special guest during soul singer Guy Sebastian's tour.