Beach Energy increases search for gas in South East with an additional well announced
BEACH Energy will drill an additional conventional gas well near its contentious Haselgrove-3 well, south of Penola in the state’s South East.
BEACH Energy will drill an additional conventional gas well near its contentious Haselgrove-3 well, south of Penola in the state’s South East.
The oil and gas company will also commence design of a new $22.6 million Katnook processing facility, to be located at the existing Katnook gas plant.
In a statement today, the company said it would hold information sessions in Penola and Millicent next month to update the communities on its plans.
The new appraisal well, Haselgrove-4, will be drilled between late 2018 and early 2019, in conjunction with Dombey-1, which is about 20km northwest of Penola.
Haselgrove-4 will not be fracture stimulated, the company said.
Beach Energy chief executive Matt Kay said they had also started engineering design for the new 10 Terajoule/day gas processing plant to supply local markets.
“Beach is keen to contribute positively to the local community, and we remain committed to being transparent about our plans,” Mr Kay said.
The processing plant would replace the existing Katnook plant, which was not up to appropriate standards to process gas.
Beach Energy received $6 million from the Federal Government’s gas acceleration program to build the new gas plant.
Gas exploration is contentious in the region and prompted the Limestone Coast Protection Alliance to call for a ban on all forms of gas exploration and development ahead of the election.
The group believed drilling would contaminate the region’s crucial aquifers and the region’s reputation as a clean and green producer of food and wine would be destroyed.
The new Liberal Government implemented a 10-year moratorium on unconventional gas exploration, or fracking.
But Independent MP Troy Bell said the Government must legislate a ban to stay true to its election promise.
There are no active plans to start fracking activities, but concerned locals say the Government directive was not enough to stop any activity in its tracks.