Industry News

BEETALOO Basin focused Empire Energy has begun fraccing operations at its recently drilled Carpentaria-3 horizontal well.

Empire plans to stimulate up to 40 stages across 2000 metres of the horizontal section of the well. 

It will be the biggest frac in Australia. 

Empire said it will be double the size of work undertaken at the earlier Carpentaria-2H well which was stimulated across 21 stages across 927 metres. 

It is also somewhat cheaper after Empire took learnings from earlier wells and applied them across its current operations. 

Total cost for drilling the well is $10 million, below the previously budgeted $12.3 million. 

"It is encouraging that our operations team is driving significant cost efficiencies already, and this program will not only provide us with more flow rates from the Carpentaria-3H well in the new year, but also critical insights into how to further enhance gas flow productivity," Empire managing director Alex Underwood said. 

In parallel to this, Empire has commenced flow testing at the Carpentaria-2H well and installed a production logging tool to gain detailed data on flow rates from each of the 21 frac stages. 

Its fourth well, Carpentaria-4 is due to be spud next week. 

Carpentaria-4 is a vertical exploration well aimed at proving the target Velkerri shales stretch across Empire's permit. 

The previous wells have all focused on the west of Exploration Permit 187. Carpentaria-4 will be drilled in the east.

Empire is hopeful the well intersects gas and results in a material increase in resources. 

Empire shares were up 2.6% at 19.5 cents. The company had a market cap of $147 million. 

Source: Energy News Bulletin

Empire Energy Group Limited is pleased to provide shareholders with an update regarding its operations in the Beetaloo Sub-basin. 

Comments from Managing Director Alex Underwood:

"Empire is executing its 2022 Beetaloo appraisal program, the most active in the history of the Beetaloo Sub-basin, to accelerate the company into commercial production as soon as possible. Gas shortages are causing serious economic strain on the Australian economy, and the only way to bring down prices sustainably is to increase supply. We believe that Empire’s Beetaloo gas can play a major role in solving this enduring challenge.

It is encouraging that our operations team is driving significant cost efficiencies already, and this program will not only provide us with more flow rates from C-3H in the new year, but also critical insights into how to further enhance gas flow productivity.

We look forward to sharing drilling, stimulation, and flow test results in the coming weeks.”

Please click here to read the full announcement released today.  

Hydraulic Fracturing Implementation Progress Update May to November 2022

The Inquiry made 135 recommendations, three of which were separated to assist implementation planning, resulting in 138 recommendations to be reported on.

This progress update provides detail on the status of implementation from 1 May 2022 to 11 November 2022.

As at 11 November 2022, 103 of the 138 recommendations are completed. Updates to the implementation status of individual recommendations can be found on the Onshore Gas website by clicking on the relevant recommendations.

Highlights from the progress achieved in this reporting period are summarised on the Onshore Gas website and include:

• Strategic Regional Environmental Baseline Assessment (SREBA)
• Regulation and assessment
• Completing implementation of recommendations.

Independent Oversight Progress Update

The Independent Overseer continues 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 Overseer to remain at arms-length from day-to-day decisions and processes relating to implementation.

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

Read Dr Ritchie’s full advice

What’s next?

All remaining recommendations are in progress and expected to be implemented by the end of year. In early 2023, the NT Government will carefully consider the actions taken to implement all Inquiry recommendations and will need to be satisfied that the risks identified by the Inquiry have been sufficiently mitigated.

Want to find out more?

To keep up to date with the status of implementation of each recommendation, sign up for regular updates on the website: hydraulicfracturing.nt.gov.au/contact or by email: hydraulic.fracturing@nt.gov.au

Please direct all correspondence to:
Hydraulic Fracturing Inquiry Implementation Taskforce
GPO Box 4396, Darwin NT 0801
T 08 8999 6573
E hydraulic.fracturing@nt.gov.au
W hydraulicfracturing.nt.gov.au

Santos notes the decision by the Full Federal Court today to dismiss the appeal from Justice Bromberg’s decision in September, which set aside NOPSEMA’s approval of the Barossa Gas Project’s Drilling Environment Plan (Plan).

Santos has consulted with Traditional Owners and their representative bodies on the Barossa Gas Project since 2016 and will continue to do so, taking into account the guidance provided by the Court.

With a range of cultural heritage and native title agreements across 23 Traditional Owner Groups and six Land Councils around Australia, Santos has a strong track record of working constructively and collaboratively with Traditional Owners.

Santos has always sought to meet its consultation responsibilities and is continuing the process of revising the Drilling Environment Plan to address the matters contained in the judgement.

Further, Santos will now proceed with applications for all remaining approvals in accordance with the guidance provided by the Court.

As a result, Santos does not anticipate any material cost or schedule impact, and first gas from the Barossa Gas Project remains on track to be delivered in the first half of 2025.

Source: Santos

The Territory Labor Government has successfully delivered legislation to guide development of the onshore shale gas industry, in line with the 135 recommendations from the ‘Scientific Inquiry into Hydraulic Fracturing in the Northern Territory’ (Pepper Inquiry).

Today, the Petroleum Legislation Amendment Bill 2022 passed in parliament, satisfying 13 of the relevant 135 recommendations.  

These include empowering the community through key decision making process, mandatory insurance requirements for all petroleum interests and enabling a more rigorous legislative framework that provides a strong deterrent for non compliance.

Quotes from Minister for Mining and Industry Nicole Manison:

“The Territory Labor Government is continuing to deliver upon its commitment to implement all 135 recommendations of the Pepper Inquiry.

These laws address 13 of the 135 critical recommendations to make onshore shale gas development in the Northern Territory not only sustainable, but world class and best practice.

Gas will play a critical role in the renewable energy transition as we move toward a greener future, and will be crucial for the Territory economy and local jobs.

Government has collaborated with the Territory’s Land Councils to strengthen consent provisions in the legislation. Traditional Owner consent is non-negotiable, and exploration or production cannot and will not proceed without it.”

Nicole Manison
Minister for Mining and Industry

Source: NT Government Newsroom

Tamboran Resources releases Sustainability Plan

Highlights

• Tamboran Resources has released its 2022 Sustainability Plan, outlining the Company’s vision for playing a part in the global transition to a low carbon economy through production of low-CO2 natural gas.

• Tamboran recognises that operating sustainably is not only relevant to the Company’s impact on the environment and local communities, but also vital to generating long term value for stakeholders.

Tamboran Resources Limited (ASX: TBN) Managing Director and CEO, Joel Riddle, said:

“We are pleased to share our 2022 Sustainability Plan. We aspire to play a part in the global transition to a lower carbon, more sustainable future and look forward to progressing the development of our Net Zero natural gas resources in the Beetaloo Basin.

“Tamboran remains absolutely committed to operating sustainably. We intend to continue to build on the deep relationships with Traditional Owners, pastoralists, other local stakeholders and the Northern Territory Government that have been fostered by Origin in the Beetaloo over its substantial, multi-year exploration and appraisal program.”

To read the full release, click here

Aboriginal community engagement and information update

Principles of engagement

The Principles of Engagement when using Aboriginal Interpreters (the Principles) are a guide for undertaking consultation with Aboriginal people where English is not a first language. The Principles were developed in accordance with recommendation 11.5 from the Final Report of the Scientific Inquiry into Hydraulic Fracturing in the Northern Territory, which states:

That interpreters be used at all consultations with Aboriginal people for whom English is a second language. Interpreters must be appropriately supported to ensure that they understand the subject matter of the consultation.

The Principles emphasise the importance of using interpreters when explaining complex scientific matters and recognise the significance of respecting community and culture when consulting with Aboriginal people. The Principles aim to promote consistent, effective and accountable engagement with Aboriginal people through working together.

The Principles are available for download at the Onshore Gas website.

Information in Aboriginal languages

Audio files about groundwater, methane and shale gas are available to use when engaging with Aboriginal people across the Territory regarding shale gas development and hydraulic fracturing.

The audio files are available for download at the Onshore Gas website in the following languages:

• Anindilyakwa
• Anmatyerr
• Burarra
• Eastern Central    Arrernte
• Eastside Kriol
• Kunwinjku
• Maung
• Murrinh-Patha
• Ngarinyman
• Pintupu-Luritja
• Pitjantjatjara
• Tiwi
• Warlpiri
• Warumungu
• Western    Arrernte
• Westside Kriol
• Yolngu Matha
• English.

Audio files in Alyawarr will be produced and made available when finalised.

Community Engagement and Information Program

The latest Annual Delivery Plan for the Community Engagement and Information Program was recently signed by NT Government and CSIRO with Ethics Clearance also achieved through the CSIRO process. This Program will provide reliable, accessible, trusted and accurate information to communities potentially affected by shale gas development and hydraulic fracturing in the future.

Resources arising from ongoing consultations with communities will be developed through the Community Engagement and Information Program and made available.

The Territory Labor Government has taken another major step forward in modernising the Northern Territory’s environmental protection laws.

Amendments passed today in parliament, incorporate chain of responsibility (CoR) provisions into the NT’s environmental regulatory framework for onshore gas.

CoR laws protect taxpayers from inheriting the cost of cleaning up environmental damage by ensuring that accountability can be passed along corporate structures. It allows for “related parties” to be compelled to manage and rehabilitate sites operated by companies experiencing financial difficulties.

Adoption of a CoR law is also important to implement recommendation 14.30 of the independent ‘Scientific Inquiry into Hydraulic Fracturing in the Northern Territory’ (Pepper Inquiry) which states that:

“prior to the grant of any further production approvals, the Government enacts provisions establishing a chain of responsibility for gas companies and related parties to ensure compliance with environmental obligations”.

The Territory Labor Government is continuing to deliver all 135 recommendations of the Pepper Inquiry.

Quotes from Minister for Environment, Climate Change and Water Security, Lauren Moss:

“This Territory Labor Government knows that protecting our environment is a critical part of ensuring future generations of Territorians will also have the opportunity to experience our unique way of life.

“We can do this while providing for the sustainable economic development that is essential to grow our economy, provide future jobs, and support the wellbeing of those who call the NT home.

“We believe in the science, we believe in protecting our cultural and ecological values, and we believe in creating compliance frameworks that will work to protect the interests of all Territorians.”

Lauren Moss
Minister for Environment, Climate Change and Water Security

Media Release: NT Government Newsroom 

The Northern Territory Government has released a tender for a lead environmental consultant to undertake an environmental assessment for the Adelaide River Off-stream Water Storage (AROWS) infrastructure project and also produce a final Environmental Impact Statement (EIS).

Ensuring a rigorous environmental assessment is essential to supporting the viability of this important project.

The lead environmental consultant will build on the preliminary environmental assessment and studies completed to date by the Power Water Corporation.

The final EIS will inform government as to whether additional environmental or regulatory approvals need to be undertaken for the AROWS project.

Community consultation and securing key regulatory approvals is essential before a decision can be made to deliver the project.

The Northern Territory Government is committed to ensuring that future water infrastructure projects are developed in a sustainable manner that minimises the potential impact on the environment.

To ensure this each stage of the environmental impact assessment process will be assessed in line with requirements under the Northern Territory Environment Protection Act 2019 and Commonwealth Environment Protection and Biodiversity Conservation Act 1999, to inform the final EIS

The AROWS project is the largest water infrastructure project in the Northern Territory’s history and it is proposed to be Darwin’s next major water supply source to provide water security to our community.

As an off-stream water storage project, AROWS takes an innovative approach to provide complementary outcomes of water availability and environmental sustainability.

The Territory Economic Reconstruction Commission (TERC) identified that a step change in the Territory’s approach to water is needed to support the Territory’s target of a $40 billion economy by 2030.

Investment in enabling water supply infrastructure will support the realisation of the Territory’s economic target.

It is also important that we develop sustainable solutions that protect our environment and maintain our great Territory lifestyle.

For further information and to register for the industry briefing email WaterInfrastructure.DITT@nt.gov.au

The Darwin Region Water Supply Infrastructure Program - Stage 1 is jointly funded by the Australian and Northern Territory governments, delivered in partnership with Power and Water Corporation.

Shaun Drabsch, CEO Department of Industry, Tourism and Trade

“The NT Government is committed to delivering safe drinking water for all Territorians, as well as enabling economic development through irrigated agriculture and industry expansion.”

“It is also important that we develop sustainable solutions that protect the environment and our great Territory lifestyle.”

“Environmental considerations are critical in the development of the AROWS project and the Territory Government will always ensure our environmental processes are robust.”

“Sustainable outcomes and environmental protection of the Adelaide River and surrounds are paramount for planning for this infrastructure project and will be a key feature of the EIS.”

“Stakeholder consultation is also important and there will be opportunities for the community to provide input through this process.”

Source: Department of Industry, Tourism & Trade

Highlights

Production casing has been successfully run to the end of the lateral section in the record-breaking Carpentaria-3H horizontal well (C-3H). Schlumberger Land Rigs 185 was released on 21 November 2022 and is being moved to the C-4V drill pad

C-3H fracture stimulation is expected to commence in early December

Carpentaria-4V vertical well (C-4V) drilling is expected to commence in early December

$10 million revolving credit facility and $5 million performance bonding facility established with Macquarie Bank Limited (Macquarie)

For full announcement, please click here