News

Sun Cable and the Northern Territory Government (NTG) today signed a milestone agreement to facilitate the Australia-ASEAN Power Link (AAPL), that will see the Territory host one of the world’s largest renewable energy systems.

The project includes a solar and storage precinct near Elliott, in the Barkly Region, high voltage direct current (HVDC) transmission connecting the precinct to the Darwin-Katherine Interconnected System (DKIS) and proposed Middle Arm Battery and a HVDC submarine link to Singapore.

The 70-year, $22B project will create about 1500 jobs during construction and 350 jobs during operations, as well as $1B in exports.

Signing on behalf of the Northern Territory Government, Chief Minister Michael Gunner said:

“Today’s announcement is a big step forward for the Territory – for our energy security and our job security.

“This project will put the NT on the international map when it comes to renewables.

“It will also see hundreds of Territorians find work in the Barkly and Darwin regions during the construction and operational phases.

“This project will transform the Territory into a renewable energy powerhouse, and cement our position as Australia’s comeback capital,” the Chief Minister said.

Sun Cable CEO David Griffin said the AAPL project would generate and transmit dispatchable, competitively priced, renewable energy at scale.

“This will provide affordable, reliable energy to support industrial growth in Darwin, as well as supplying up to 20% of Singapore’s electricity needs,” he said.

“The Australia-ASEAN Power Link project will help the Northern Territory make deep cuts to its emissions intensity by decoupling economic growth from carbon pollution,” he said.

Benefits of the project include:

• a world-leading renewable energy transmission system;
• economic diversification for the Northern Territory;
• reliable, affordable dispatchable power;
• providing cost effective electricity supply to facilitate new manufacturing, minerals processing and data centre projects;

• a major boost to the Territory’s construction sector and a range of other services and suppliers;

• a substantial reduction in greenhouse gas emissions in the Northern Territory, Australia and the Indo-Pacific, helping the Territory achieve its goal of net zero carbon emissions by 2050;

• Sun Cable will establish a Renewable Energy Centre of Excellence in the Territory, drawing on existing local solar, electricity and infrastructure expertise to grow research and development of renewables.

Sun Cable today signed a Project Development Agreement with the Northern Territory Government that recognises the AAPL’s Major Project Status.

Sun Cable will prepare a Territory Benefits Plan, including an Aboriginal workforce development plan and local participation strategy to maximise local jobs and procurement.

The company has engaged Darwin company EcOz to prepare its Environmental Impact Statement for the project.

The project has drawn on the services of another dozen Territory companies, covering environmental services, ecological and geotechnical surveys, architecture, legal, strategic communication and maintenance.

The company expects AAPL’s financial close to be in late 2023, with first electricity to Darwin by 2026 and Singapore from 2027.

Media inquiries

Jane Munday, True North Strategic Communication on 08 8981 6445 or 0427 880 083

Origin has submitted a notification and initial report to the Northern Territory Government confirming the discovery of hydrocarbons at the Kyalla 117 N2-1H ST2 exploration well near Daly Waters, in the Beetaloo Sub-basin.

The notification of discovery is supported by preliminary production test data and petrophysical data. It follows recent work to introduce nitrogen to lift the fluids in the well, allowing it to flow unassisted for a measurable period.

The initial report, based on early well flow data, is positive and shows:

• Unassisted gas flow rates ranging between 0.4 and 0.6 million standard cubic feet per day (MMscf/d) over a seventeen-hour period.
• Flow back of hydraulic fracture stimulation water to surface with an average rate of between 400 – 600 barrels per day (bbl/d) over the same period.
• Initial observations indicate a liquid-rich gas composition with CO2 estimated at less than 1%. Condensate shows were also present.

Origin Executive General Manager Integrated Gas, Mark Schubert said, “We are encouraged by the early results from the well, which has met our primary objective to flow liquids rich gas from the Kyalla formation.

“To support the well to flow continually without assistance we will now put in place longer term measures to flow back sufficient hydraulic fracture stimulation water, enabling production testing to commence in the coming months during the dry season.

“This is the first well to be successfully drilled into the Kyalla formation and we continue to gather important knowledge and data that will inform and refine our ongoing exploration activity in the Beetaloo,” Mr Schubert said.

The notification of discovery and initial report are a requirement under s64(1) of the Petroleum Act 1984 (Northern Territory) and satisfies the requirements of the NT Guidelines for reporting a petroleum discovery.

A further update will be provided when production testing has concluded, and detailed evaluation has been undertaken, expected to be in Q2 2021.

The Beetaloo Exploration Project is a joint venture with Falcon Oil & Gas Limited. For more about the project visit www.originbeetaloo.com.au.

JUST a day after it was revealed Neoen plans to build a 500MW battery in NSW, Origin has one-upped them, announcing plans to build a 700MW battery at its Eraring Power Station.

In a press release Tuesday, Origin said it had issued an Expression of Interest to suitably qualified firms to supply and install the battery and had lodged a Connection Enquiry to grid operator Transgrid to connect the battery to the grid. 

"We recognise we have an important role to play in positioning Origin's electricity generation portfolio to support Australia's rapid transition to renewables," Origin executive general manager Greg Jarvis said. 

"A large-scale battery at Eraring will help us better support renewable energy and maintain reliable supply for customers, by having long duration storage ready to dispatch into the grid at times when renewable sources are not available."

The 2.8 gigawatt Eraring power station is Australia's largest, supplying around a quarter of NSW's energy needs and is Origin's only coal-fired generator.

Origin expects the battery to be deployed over three phases, with the first phase to be operational by late 2022. The project is yet to be approved by the Origin board. 

"The deployment of this battery at Eraring will support Origin's orderly transition away from coal-fired generation by 2032, while complementing the policy objectives of the NSW energy roadmap," Jarvis said. 

The NSW roadmap, legislated late last year, calls for 2GW of energy storage to support 12GW of renewables expected to be rolled out across the state's four proposed renewable energy zones.

Origin's announcement comes a day after Neoen submitted a scoping study to the NSW government to build a 500MW battery in town Wallerawang. 

The study suggests construction on the A$400 million project could begin by 2022 and be operational by 2023. 

Historically grid-scale battery storage systems have had to be underwritten by governments in order to be competitive, however the economics around the technology are rapidly shifting as the cost of deployment falls. 

Source: Energy News Bulletin

Read more here

SHELL chief Ben van Beurden has outlined some of the company’s plans to reduce its carbon emissions ahead of the company unveiling its new strategy next month.

In an interview posted on Shell's website last week, Van Beurden noted the personal and financial pain caused by last year's COVID-19 pandemic and subsequent oil price crash, forcing the company to cut its dividend. 

"I had a knot in my stomach on the day we had to announce it, even though, at a senior level, we all agreed that this was the right thing to do," he said. 

Last April the company announced its ambition to reach net-zero emissions by 2050 or sooner, alongside other European majors including BP, Equinor and Repsol. 

Beurden addressing Scope 1 emissions would be the smallest of three tasks it would have to do, noting the company would also have to reduce the carbon intensity of the products it sells by selling things such as hydrogen, biofuels and electricity, and also address Scope 3 emissions. 

"We have to work with our customers because we cannot simply try to sell lower-carbon energy to customers who have no technical nor commercial use for it. We have to help our customers get to net zero. If they cannot get to net zero, we will not get to net zero," he said.

"The exact steps to get there are not yet totally clear, but what we do know is that you can figure it out best by working sector by sector."

Last month the Financial Times reported several senior clean energy executives had quit the company amid a spat over how far and fast it should shift towards renewables and biofuels. 

The FT said some executives have pushed for a more aggressive shift from oil but top management is more inclined to stick closer to the company's current path. 

Beurden's interview made no mention of the internal rifts, with the chief saying the company's net zero ambition would mean changing the way the company thinks and the way its organised, noting around 7000-9000 jobs across the company were expected to go by the end of 2022. 

"The strategy we are setting is transformational. If you plan to be the type of organisation that works with customers on products and technologies that are not yet well established, you have to be more entrepreneurial, more nimble, more simple," he said. 

Last month, Beurden told a web conference he was hopeful the incoming Biden administration would bring stronger collaboration and policies to tackle climate change and speed up the energy transition.

Source: Energy News Bulletin

Read more here

MORE ageing Australian assets are off the table after Eni has pulled the sale of its fields and associated infrastructure, apparently citing lower than expected offers. 

This follows ExxonMobil's decision to cancel the planned sale of its Bass Strait assets offshore Victoria late last year, after putting them up for sale in September 2019.  

The US giant was again apparently unhappy with the prices offered. In 2016 it tried and failed to sell its stake, though even in June last year Australian chief Nathan Fay was gung ho on the asset sale.  

Eni holds the Blacktip gas field offshore the Northern Territory, stakes in the Bayu-Undan gas field operated by Santos, which sanctioned a three-well infill drilling program two days ago to prolong the life of the declining asset, and the Darwin LNG plant it feeds. 

Source: Energy News Bulletin

Read more here

SANTOS has sanctioned its US$235 million Bayu-Undan infill development drilling program to send more gas to the one train Darwin LNG facility.

Phase 3C is made up of three production wells, one subsea and two platform wells, to extend the life of the facility as sanction of the Barossa backfill field has been delayed to later this year, after an initial final investment decision date of 2020.  

The program will add over 20 million barrels of oil equivalent in gross reserves and will reduce the time the DLNG plant is offline, though the company did not say by now much.  

The three will be drilled using the Noble Tom Prosser jack-up rig and the spud of the first well is planned for the next quarter and production by the following quarter. The fields are now fully in Timor Leste waters after the maritime boundary was ratified in 2019 by Canberra and Dili.  

"We are delighted to be able to pursue an opportunity that wasn't on the table 12 months ago, which will optimise field recovery, extend production and deliver significant value to both the Bayu-Undan joint venture and the people of Timor Leste," managing director Kevin Gallagher said.  

"Only through a close and constructive working relationship with the Timor Leste government and our joint venture partners have we been able to move so quickly towards our shared goal of maximising value from the Bayu-Undan field." 

Santos took a much larger share in the field, Barossa and the LNG plant last year when its buy of ConocoPhillips' Northern Australia and Timor Leste assets completed. It holds 68.4% of Bayu-Undan and DLNG, which goes down to 43.4% when its sale of a share of both assets to partner SK E&S completes. 

Source: Energy News Bulletin

Read more here

Community and Business Reference Group meet for the eighth time

The Onshore Shale Gas Community and Business Reference Group (Reference Group) held its eighth and final meeting in Darwin and via video conference on 8 December 2020.

Established to provide a forum for government to seek advice and share information, the Reference Group received updates on:

• HFI implementation six month progress update: for the period of 1 May to 31 October 2020
• CBRG term conclusion and ongoing oversight.

The Reference Group discussed the progress update with Northern Territory Government senior officers and Dr David Ritchie in attendance.

The Reference Group supported the view that the CBRG term would conclude on 31 December 2020 without seeking further extension. Engagement and oversight through final stage of inquiry implementation would continue directly with the Independent Overseer, Dr Ritchie and through existing and newly established working and reference groups.

For full details of the meeting read Communique 8

EXPLORERS in the Beetaloo Basin are rejoicing over the federal government’s commitment to underwrite up to A$50 million in exploration work in what is quickly becoming the world’s hottest oil play

The Morrison government yesterday announced it would provide funding to fast-track drilling in the Beetaloo Basin by covering 25% of eligible exploration costs, capped at A$7.5 million per well, and three wells per exploration venture. 

The news has been greeted with great enthusiasm from oil and gas explorers in the frontier play. 

ASX-listed Empire Energy, which recently drilled its Carpentaria-1 exploration well and hit liquids-rich gas, said the program would be a game changer for its short-term plans. 

"Access to this program will allow Empire to expand its 2021 program," Empire Energy CEO Alex Underwood said. 

Empire expects to receive approval to frac the vertical and horizontal sections of its Carpentaria-1 well by the first quarter of next year. 

It could be drilling a second well by the second quarter, given the new fund available to it. 

The funding will be available for exploration that occurs before June 2022.

Fellow Beetaloo Basin explorer Falcon Oil & Gas, which holds 22.5% interest in three exploration permits alongside operator Origin Energy, also noted the fund. 

"The announcement by the Australian government highlights the strategic and economic importance of the Beetaloo sub-basin which it believes has the potential to be a world-class resource, transform the NT economy and generate 6000 jobs by 2040," Falcon CEO Philip O'Quigley said. 

Source: Energy News Bulletin

Read more here

Seventh Hydraulic Fracturing Implementation Progress Update

Updates on implementation of recommendations from the Final Report of the Scientific Inquiry into Hydraulic Fracturing are available on the Hydraulic Fracturing website.

This progress update provides detail on the status of implementation from 1 May to 31 October 2020. As at 31 October 2020, 61 of the 135 recommendations have been fully completed. Updates to the implementation status of individual recommendations can be found by clicking on the relevant recommendations.

Highlights from the progress achieved in the six month period from 01 May – 31 October 2020 and next steps are summarised below, aligned to the following four key areas of implementation and reform:

• The Strategic Regional Environmental Baseline Assessment (SREBA) for the Beetaloo Sub-Basin

• Regulation and Assessment

• Completing implementation of the Inquiry Recommendations

• Information Management and Community Engagement.

1. SREBA

The SREBA is a set of studies to address knowledge gaps and establish appropriate baselines against which the potential impacts of proposed onshore gas activities may be assessed. The baselines can also assist in the design and planning of future development, particularly at a regional scale, in order to minimise impacts.

The SREBA consists of six study domains: water quality and quantity; aquatic ecosystems; terrestrial ecosystems; methane and greenhouse gas; environmental health; and social, cultural and economic. To guide these studies, the Framework for Strategic Regional and Environmental Baseline Assessment: A guide to undertaking a SREBA in the Northern Territory (the Framework) was released in July 2020 following public consultation, briefings and seeking further feedback to inform the final Framework.

The Department of Environment, Parks, and Water Security (DEPWS) is responsible for the coordination of all six SREBA studies and the delivery of the five studies relating to the biophysical environment and environmental health. The Department of the Chief Minister and Cabinet (CM&C) is responsible for delivering the sixth study, which relates to the social, cultural and economic domain.

All six studies have commenced and are at different stages of development.

• The Scope of Work for the water component of the SREBA for the Beetaloo Sub-basin has been drafted, ready for peer review. The Scope of Work for the aquatic ecosystems components of the SREBA is currently under development, and this will include consideration of subterranean ecosystems, which will also be informed by baseline studies in the Water domain.

• The Scope of Work for the terrestrial ecosystems component of the SREBA for the Beetaloo Sub-basin is near completion.

• Some baseline studies that will contribute to the water and ecology components of the Beetaloo SREBA have already commenced through the Commonwealth Geological and Bioregional Assessment (Program).  These biophysical studies, and the collection of data for the Beetaloo SREBA as a whole aims to be undertaken by December 2021.  

• The Scope of Work for the environmental health component and the methane and greenhouse gas studies are both currently out for procurement, with studies expected to commence in 2021.

• Following a successful procurement process, the contract for the Social, Cultural and Economic study has been awarded to Circle Advisory. Circle Advisory are currently developing stage one, the Scope of Work for these studies and have been consulting in Darwin and the broader Beetaloo Sub-Basin since September 2020. It is anticipated that the social, cultural and economic Scope of Works will be ready for the Minister for Environment to approve in early 2021.

2. Regulation and Assessment

Agencies continue to regulate the onshore petroleum activities while progressing recommendations of the Final Report. A total of 15 Environment Management Plans (EMPs) have been approved under the Petroleum (Environment) Regulations 2016 since the responsibility for environmental regulation was transferred to the Minister for Environment.

DEPWS compliance activities are ongoing and include the review and publication of monitoring reports and periodic inspection of well sites. In the interest of transparency, interest holders are required to submit Annual Environment Performance Reports detailing compliance with environmental obligations made in the EMP. Eight reports have been published on the website in 2020. DEPWS is also implementing recommendations from an informal review that sought feedback from other agencies and industry, with a view to improving the efficiency and effectiveness of environmental regulation.

The Department of Industry, Tourism and Trade (DITT), now holding the regulatory functions of the former Department of Primary Industry and Resources, continues its regulatory responsibilities related to well integrity, hydraulic fracturing and well operations, having approved a Well Operation Management Plan for drilling activities undertaken in the McArthur Basin by Empire Energy. The Department has conducted monitoring and compliance site inspections at Origin Energy’s Kyalla 117 well in the Beetaloo Sub-basin and Empire Energy’s drilling activities. Regulation of tenure responsibilities including company work programs, title administration and revocation or reserve blocks also remains a key function and responsibility.

Offsets (recommendation 8.9) and Emissions (recommendation 9.8)

The Northern Territory Government released its ‘Northern Territory Offsets Framework’ and ‘Northern Territory Offsets Principles’ in July 2020. The principles will support the development of offset policies to guide consistent offsetting arrangements and requirements for projects with significant residual environmental impacts in the Northern Territory.

Under the Framework, individual and targeted biodiversity and greenhouse gas offset policies will be developed. Work on these policies is underway.

The Northern Territory Government is currently working with the Commonwealth Government on negotiating a Bilateral Agreement which focusses on a number of priorities with respect to energy and emissions, including efforts to assist in meeting recommendation 9.8: That the NT and Australian governments seek to ensure that there is no net increase in the life cycle GHG emissions emitted in Australia from any onshore shale gas produced in the NT.

Petroleum Act amendments

The Petroleum Legislation Miscellaneous Amendments Bill 2019 was passed in the Legislative Assembly on 24 March 2020 and was assented to on 30 March 2020. The amendments to the Act commenced in June 2020 and allow for regulations to be made in relation to land access.

The government consulted with affected stakeholders on draft Petroleum Regulations that detailed the requirements of statutory land access agreements in June 2020. These draft regulations are being further amended and are expected to commence on 1 January 2021.  Petroleum companies will then require a land access agreement with the minimum 24 protections before being able to undertake petroleum exploration activities on a pastoral lease.

EBPC Act amendments

On 29 October 2019, the Federal Minister for the Environment formally announced a review of the Environment Protection and Biodiversity Conservation Act 1999 (Cth)(EPBC Act).

The Northern Territory Government provided a submission to the Review reiterating its expectation that the Commonwealth review will include a response to recommendation 7.3: that the Australian Government amends the EPBC Act to apply the ‘water trigger’ to onshore shale gas development.

The Interim Report of the Review was released in June 2020. The Interim Report does not support changes to matters of national environmental significance (MNES) as proposed by recommendation 7.3.

The Final Report of the Review was submitted to the Federal Minister for the Environment at the end of October 2020. The Territory Government will continue to liaise with the Commonwealth regarding this matter.

3. Completing implementation of Inquiry recommendations 

The NT Government has made significant progress in a short amount of time by implementing 61 of the Inquiry’s recommendations, Government must complete an additional 74 Inquiry recommendations (of which 24 relate to the SREBA) before it can consider industry applications for production activities of shale (unconventional) reservoirs. This requires a significant amount of research, policy development, regulatory development and changes to legislation over the next three years, supported by significant stakeholder and community engagement.

In addition to the status of priorities already covered in this submission under the specific sections of 1. SREBA, 2. Regulation and Assessment and 4. Information Management and Community Engagement, a number of other implementation priorities are the focus for 2021.

Further amendments to the Petroleum Act

The Petroleum Act will require further amendments in 2021 to complete numerous outstanding Inquiry recommendations, which includes, but is not limited to:

• Merits review for decisions under the petroleum legislation with third party standing;

• a non-refundable levy for the long term-monitoring, management and remediation of abandoned wells;

• development of a financial assurance framework for petroleum operators; and

• a broader range of powers to sanction under the legislation.

Seismicity Framework

DITT will develop and implement a framework for mitigating induced seismicity occurrences, as a result of petroleum industry activities and continues the work with CSIRO and regulators to formulate an appropriate system for measuring seismic intensity in the Northern Territory.

Financial Assurance Framework

The Petroleum Act 1984 was amended to enable regulations to be made to require an environmental security for onshore petroleum activities including the calculation of security. DITT and DEPWS will develop and implement a financial assurance framework in consultation with the community and key stakeholders. 

The Northern Territory’s Gas Service and Supply Plan

HFI recommendations 13.2 to 13.10 require the NT Government to work with stakeholders and gas companies to maximise local employment and develop local procurement targets.

These recommendations are being advanced through the NT Gas Service and Supply Plan that was launched on 5 March 2020 to increase local participation to at least 50 per cent by 2025 through strengthening the commitment of gas operators to local content, growing local workforce and business capability and strategically developing the service and supply ecosystem.  It includes actions to work with gas companies, land councils, local governments, local suppliers and businesses to strengthen gas industry procurement targets.  

The Plan is supported by the establishment of the Onshore Gas Supply Chain Working Group which held its inaugural meeting on 16 July 2020 with membership including NTG, Santos, Origin Energy, Armour Energy, Empire Energy, Pangaea and Central Petroleum; and the more recent meeting of the Gas Industry Reference Group of peak bodies on 27 October 2020.

4. Information Management and Community Engagement

Online portal

An online portal for public access to information and data on onshore petroleum activities, including approvals and compliance reports, has been established. The online portal is expected to go live by December 2020. The portal contributes to government’s commitment of ensuring transparency in the development and regulation of the onshore petroleum industry.

Community engagement and Social Responsibility

Recommendations 12.16, 12.17 and 12.19 Inquiry require the NT Government and the onshore petroleum industry to undertake actions which facilitate community cohesion, build trust, and maintain transparent communication with the public and stakeholders. These activities are characteristics necessary to develop and maintain a Social Licence to Operate (SLO).

The preferred term is ‘social responsibility’ which is required to build ‘social value’ to better represent the desire to build public understanding and trust of both the onshore petroleum industry and government’s ability to regulate.

A Social Responsibility Framework to guide the delivery of this work, is being progressed, with an independent science-based community engagement program to commence in 2021. The objective of this work program is to have an independent, scientific and credible team/institution deliver information to all interested parties, through ongoing and regular face-to-face engagement with the community about onshore unconventional gas in the NT.

Aboriginal Information Program

An Aboriginal Information Program (AIP) working group was formed in late 2019, with members from the NT Government, the AAPA, Northern and Central Land Councils, industry representatives and the Australian Petroleum Production and Exploration Association (APPEA). The working group agreed to coordinate the development of an Aboriginal information package in two stages.

As part of Stage 1, a Scope of Works was developed by CSIRO and approved by the group in March 2020. This work consists of CSIRO delivering a package of information that is:

clear, factual and relevant content for communication material to distribute to communities potentially affected by shale gas development and hydraulic fracturing in the Northern Territory, particularly for translation into languages of local Aboriginal communities.

To ensure content of the package delivers on the intended purpose of the program, Land Councils are now working directly with CSIRO to finalise the draft package that will be presented to the working group for their endorsement and decision on next steps.

Whilst delivery of this project has been delayed, AIP working group members are engaged and supportive of the approach being taken to ensure delivery of the project achieves the desired intent.

Independent Oversight of the Seventh Hydraulic Fracturing Implementation Progress update

The role of the Independent Overseer is to provide the Chief Minister and NT Government with independent advice on how the implementation of the recommendations from the Inquiry is progressing and being managed. The nature of this role requires the Independent Officer to remain at arms-length from day-to-day decisions and processes relating to implementation.

The Chief Minister approved the extension of Dr Ritchie’s term as Independent Overseer until 31 December 2021 to see out implementation of HFI recommendations.

Dr David Ritchie, has provided comment on the progress of implementation outlined in the seventh update.

Overall, Dr Ritchie found that implementation continues satisfactorily in accordance with the findings of the Inquiry.

Read Dr Ritchie’s full advice here PDF (218.7 KB) PDF (224.5 KB)

To contact the Independent Officer, email Dr David Ritchie at independent.oversight@nt.gov.au

Community and Business Reference Group

The Community and Business Reference Group met for the eighth and final time on 8 December 2020. The agenda primarily focussed on the review of the review of the 6 month Progress update. The CBRG term ceases on the 31 December 2020 with members briefed on the ongoing oversight arrangements that will be put in place for the duration of implementation.

What’s next?

The NT Government is progressing from stage two to stage three of the Implementation Plan for most Hydraulic Fracturing Inquiry recommendations. Stage three recommendations are mostly larger projects that are anticipated to be delivered over the next 18 months to three years. Progress updates will be announced through six-monthly community bulletins as Stage 3 of the Implementation Plan continues.

Want to find out more?

To find out about opportunities to engage in consultation or to keep up to date with status of implementation of each recommendations, sign up for regular updates on the website: www.hydraulicfracturing.nt.gov.au by email: hydraulic.fracturing@nt.gov.au

EMPIRE Energy expects approval to frac the vertical and horizontal sections of its Carpentaria-1 well in the Beetaloo Sub-basin by the first quarter of next year from the Top End government and could be drilling by the second quarter.

It has submitted its environmental managing plan to the Northern Territory government to frac its Carpentaria-1 well in both the vertical and horizontal sections where it is targeting the Middle Velkerri Shale in its EP187 permit.  

It has been accepted by the Department of Environment, Parks and Water Security for final assessment and if accepted the EMP will remain for five years.  

It said work will be run over the most promising liquids-rich gas intervals, and data analysis to choose these is ongoing.  

The company said it is "active discussions'' with contractors to frac the well who have confirmed needed equipment will be available. Work will be paid for with existing cash reserves.  

Some 50 sidewall cores from the target horizons of the Velkerri are being analysed to establish porosity, permeability, mineralogy, and axial strengths.  

These will be integrated with and calibrate the downhole log data sets drilling operator Schlumberger acquired.  

It expects the final set of core analyses from the W.D. von Gonten laboratories in Texas in the middle of next month. Then it will commission certifiers Netherland Sewell & Associates to update its independent prospective resource report, which it expects material changes to given the presence of liquids found while drilling.  

It suggests initial commercialisation via the Daly Waters to McArthur River Mine pipeline which runs through its permit and is only 5.7 kilometres from the well. The pipe sends gas to a nearby zinc mine operated by Glencore. 

It also noted a recent memorandum of understanding between pipeliner Jemena and Tamboran Resources for a new pipeline running to the field the latter shares with Santos. 

Source: Energy News Bulletin

Read more here