Fracking plans to test political waters

A cashed-up American oil and gas company has formally lodged plans to start drilling and fracking in WA’s Kimberley.

A cashed-up American oil and gas company has formally lodged plans to start drilling and fracking in Western Australia’s Kimberley, putting it on a collision course with activists who have fought previous efforts to tap the region’s gas potential.

Texas-headquartered Black Mountain Energy has submitted a referral to WA’s Environmental Protection Authority over its plans to drill and frack up to six wells on its newly acquired acreage in the Kimberley.

Ashley Zumwalt-Forbes, the chief operating officer of Black Mountain, said the fracking program would be the first to take place in WA since the state’s Labor government lifted a moratorium on the practice late last year.

The government last year shut off much of the state to fracking — a process by which water, sand and chemicals are blasted at pressure into rocks deep underground, releasing gas that would otherwise struggle to flow — but has opened the door for it to continue within certain areas.

“Black Mountain will execute the first frack post the moratorium being listed, and I think we are the perfect group to do it, given our breadth of experience and our really deep knowledge with ­drilling and fracking unconventional plays,” Ms Zumwalt-Forbes said.

The company also believes the gas in the region could help address the high gas prices of eastern Australia. Black Mountain is already eyeing potential markets including the east coast if a west-to-east pipeline can be delivered, while it could also send the gas south to the Pilbara, including ­to existing LNG facilities that are increasingly hungry for gas.

The team at Black Mountain, which is owned by Texas oil man Rhett Bennett, has drilled and fractured more than 2700 unconventional gas wells.

Ms Zumwalt-Forbes is a former manager with ExxonMobil who oversaw the company’s unconventional gas expiration in China, Siberia, Qatar, Colombia, and Argentina.

Fracking has been a sensitive issue across Australia and particularly in the Kimberley, with Australian company Buru Energy — which used to hold the ­licence now owned by Black Mountain — becoming a frequent target for protesters.

Ms Zumwalt-Forbes said it was important for the oil and gas industry to educate the public about fracking and ensure all necessary safety checks were in place.

 

“I live in Fort Worth, Texas, and we have the Barnett shale underneath our city,” she said.

“In between and around all of our houses, we had development of the Barnett shale without incident, and I view that as a huge testament to the success and safety of fracking in its early days and that was 20 years ago.

“We’ve only continued to make the process safer.”

She said the company had also received strong support from the local traditional owners in the area.

“The folks we work with are so excited about jobs, excited about the area and having a bit of action from a resources company, and that’s the opinion that I truly care about, the folks we will be working with on a day in, day out basis,” she said.