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FACTS REGARDING THE GAS IN THE SOUTH EAST I am concerned that the ‘conventional gas’ is a precursor of what may be to come. Incidents have occurred in the past in the SE with conventional gas. Please feel free to download my submission http://www.parliament.vic.gov.au/images/stories/committees/SCEP/GAS/Submission_891_-‐_Anne_Daw2.pdf Although this was for Victoria, it is more up to date than SE one. In other places, including Queensland, conventional gas was drilled for 1st. When the gas ran out, as the infrastructure was in place, unconventional gas was then explored for and produced. Once the petroleum companies have a foothold in the door with conventional wells, I believe it will be very hard to stop the dynamo affect for fracking. From what I have been able to establish, providing the current Government Excell spread sheet is correct, there are a number of ‘conventional wells that have been cased and suspended, until such time, if ever that they go into production. They belong to various companies. Some were spudded a number of years ago, so I am not sure of the reality with those, or how many of these suspended wells are likely to be used for production. Bungaloo 1 put down by Beach Energy for shale exploration, is also cased and suspended until such time it goes into production. The sandstone is surrounded by the shale and the drill head has to be slightly lifted up or down for fracking. All shale needs to be fracked and Beach has done tests on the shale samples. http://www.beachenergy.com.au/IRM/Company/ShowPage.aspx/PDFs/3451-‐56505461/PromisingresultsfromOtwayBasinExplorationDrilling
“PROMISING EARLY RESULTS FROM OTWAY BASIN EXPLORATION DRILLING
Beach has cased and suspended Bungaloo-‐1 on the South Australian side of the onshore Otway Basin, with encouraging gas shows across a number of lithological zones. Further core analysis is being undertaken to support initial evidence of both conventional and unconventional gas reservoirs
Beach Energy Ltd (ASX: BPT, "Beach") advises that it has cased and suspended the Bungaloo-‐1 vertical exploration well in PRL 32 (Beach 70% and operator, Cooper Energy Ltd 30%) in the onshore Otway Basin. The well is located approximately 14 kilometres north west of the first well in the program, Jolly-‐1 ST1, and reached a total depth of 3,713 meters.
Both Bungaloo-‐1 and Jolly-‐1 were drilled to assess the potential for liquids rich gas within the shale and tight sandstone in the Lower Sawpit Shale and the Casterton Formation in the Penola Trough. Approximately 181 metres of core was cut within these wells, 103 metres in Bungaloo-‐1 and 78 metres in Jolly-‐1, with analysis of the core underway to measure properties such as gas content and composition, porosity and permeability.
Results to date have confirmed the unconventional potential of the Lower Sawpit Shale and Casterton Formation in the Penola Trough, with elevated gas readings over both intervals observed during drilling. In addition, oil shows were observed towards the base of the Lower Sawpit Shale in Bungaloo-‐1.
The work undertaken indicates that the sandy interval toward the base of the Lower Sawpit Shale, first noted at Sawpit-‐1 and -‐2, has lateral continuity in the Penola Trough. This unit has the potential for tight gas pay in the vicinity of Jolly-‐1, and may be an exploration target deeper in the trough.
Importantly, these wells have also highlighted the potential of a conventional gas play with the Sawpit Sandstone as the reservoir in the deeper areas of the Penola Trough. The Sawpit Sandstone has good reservoir quality at depths of 3,150 metres in Jolly-‐1, with porosity ranging from 7-‐18% and averaging 14%
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over the 330 metre interval intersected. Work is being undertaken to address the prospectivity of the area stemming from this result.
Conventional gas fields in the vicinity of Bungaloo-‐1 and Jolly-‐1 produced a cumulative total of 75 bcf of sales gas and 450,000 barrels of condensate from conventional structural targets between 1992 and 2011. Beach retains production licenses and maintains a gas processing facility nearby with a network of connecting pipelines.” .
Haselgrove-‐3 will be drilled in PPL Petroleum Production Licence 62. The well will be owned 100% by Beach Energy Ltd. and will be close to the Katnook gas processing facility and pipeline network and the SEA Gas transmission system. (at first) it will target conventional gas.
To add insult, according to the ASX release from Beach Energy Ltd. on March 17th 2017, the South Australian Government is giving Beach Energy Ltd. $6 million. “Depending on the scope of well design and evaluation program, the $6 million PACE grant is expected to cover 40-‐50% of the estimated cost to drill Haselgrove-‐3. Drilling in Q1 FY18 is expected. If successful, Beach’s Penola Trough acreage has additional follow-‐up exploration prospects to drill which could supply material new gas to the market.” http://www.beachenergy.com.au/irm/company/showpage.aspx/PDFs/6533_0/ASXReleasePACEGrant
Beach Energy Ltd. is drilling through the shale to get to the Sawpit Sandstone that is in yellow. To get to the shale it is only a matter of lifting the drill head up or down and frack horizontally. The concerning issue is how fast sandstone runs out of gas. I don’t believe that a deep well is going to be abandoned when Beach Energy Ltd. runs out of conventional gas. It costs a massive amount to put these wells down and would make no economic sense.
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The Haselgrove 3 well in the Excel govt. spread sheet was originally to be drilled is listed at latitude 372649.483 Longitude 1405117.821. I have found out today from DSD 20th March 2017, that this may not be the final coordinate, as this was recorded for their application in 2015.
A colleague spoke to a couple of men who were doing the well drilling and casing for either Jolly 1 or Bungaloo 1, and explained how it all works. They were saying how the V&A lane (Bungaloo 1) was capped and ready for conventional and then they will be asked to cap again and it will get left until it can be fracked.
This month (March 2017) a new document has been released by the South Australian Government.
https://sarigbasis.pir.sa.gov.au/WebtopEw/ws/samref/sarig1/image/DDD/PEDP012BROCHURE.pdf
One can’t help but get suspicious when shale is mentioned a number of times.
Page 24: Favourable indications for both conventional and unconventional reservoirs were identified and Bungaloo 1 has been suspended with gas shows for future re-entry and appraisal.
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Why would the Government put something like this out in March 2017, if they don’t intend to allow fracking in the South East? In this publication, are new PEL releases. The map below also shows releases for Geothermal Exploration Licences with the brown sloping lines. The Panax geothermal drill holes went down the same depth as the shale. The Panax Geothermal project did not go ahead, as the rocks were not impervious. Fracking is used for geothermal, and earthquakes have been caused through this process in the north of the state. One of my colleagues, an earthquake engineer, mentioned Innamincka. One report states “Seismic effects: The hydrofracturing process employed in the creation of hot rock reservoirs can induce low level seismic activity—or mini earthquakes. Hydrofracturing experiments in the Cooper Basin, for example, have induced more than 27,000 small earthquakes, although few could be felt at the surface and none were sufficiently strong to cause any damage to nearby infrastructure. Geologists are learning more about the potential risks associated with hydrofracturing and developing strategies to minimise them.”
Imagine this in the South East where there are numerous faults. THESE ARE BRAND NEW RELEASE ACREAGES
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Salamander-‐1 well was drilled in the Otway Basin near Nangwarry in the SE of SA in 2010 by Panax Geothermal (RAYA Limestone Coast Project). The well was drilled to 4,000 metres. The project halted, because the rocks were not impervious. Left behind was a drilling mud area and 2 holding ponds. One holding pond contained a severe algae bloom, and the HDPE plastic liner, less than 4 years old, contained large holes and tears.
Picture shows holding ponds at site of Salamander 1 near Nangwarry. Right side shows algae bloom. Left side note hose in right hand corner pumping out the last of the pond water. Please note the same tears in the HDPE plastic liner with before and after photos.
On 3rd July 2012 DMITRE inspected Panax Geothermal Salamander 1 well site and detected a gas leak from the wellhead. A subsequent inspection showed a second smaller leak. Gas sampling found the gas methane rich. The cause of the leak was due to a short un -‐ cemented section behind the 9 . 5/8” casing below the 13.3/8” shoe and failure of the 9.5/8” liner packer resulting in a loss of pressure containment. EXPLORATION WASTE WATER
The exploration well at Penola (Jolly 1) produced about 1,000,000 litres of highly saline water, with high levels of potassium and virtually no calcium and magnesium and elevated levels of metals above the recommended drinking water guidelines for arsenic, barium, chromium, manganese, nickel and lead. The water also contains trace amounts of organic substances including phenol, phenanthrene, fluroanthrene, pyrene and chrysene. Many of these substances and all of the metals are persistent pollutants extremely harmful to human health. Barium was 20 times the recommended amount. Page 2 of the analysis report states that there was a poor matrix spike recovery due to the presence of high contaminants. The holding ponds waste -‐ water was ‘irrigated’ on agricultural land near Penola, as a means of disposal. There were over 300 substances, (many toxic) according to my professional colleague, that were not included in the Beach Energy analysis. They may or may not have been present, and only adequate testing would have revealed this. The sodium adsorbtion ratio in the waste-‐water analysis was 238. The most tolerant plants for agriculture are at 102 maximum. Clover (pasture) is between 18 and 45. I have not heard any plans for future waste-‐water disposal. This water should not be spread on prime agricultural land, nor should it be re-‐injected because of the risk of earthquakes. Mount Gambier had a 3.1 magnitude earthquake 10 km deep on 19th March 2017. There have been a number of earthquakes in the SE over the last couple of years.
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Jolly One analysis for waste-‐water was 31,700 μS/cm and 20,600 TDS. Dr Ian Wilson, former Director of the EPA in Queensland. and Principal Geologist with the Department of Mines in Queensland, states that The beneficial use Guideline would not allow water containing more than about 1000 mg/L to be used for irrigation ("irrigation water shall not exceed 1,500 μS/cm'’). I attended a lecture and spoke with Professor Fisher, past president of the American Association of Petroleum Geologists, member of the National Academy of Engineering and serves currently as a member of the National Petroleum Council. I do not agree with everything he says as I have conflicting evidence. However we were both in agreement in relation to faults and earthquakes. I was surprised when he mentioned there could be up to 60 stages of fracking. http://www.groundwater.com.au/videos I have put the approximate times of the video stages for the important points. At 8 mins 33 secs Re injection of waste water. “If you re-‐inject near some geological faults you can lubricate the fault and create earthquakes.” At 16 mins 52 seconds -‐ can be 60 stages of fracking. At 41 minutes 36 seconds “If drilling near faults, and there is a high enough amplitude on vertical fracture patterns this can cause leakage up into the aquifers……. Hydraulic fracturing can potentially give rise to induced seismicity if it hits a pre-‐existing fault……. Blackworth in Great Britain -‐ they drilled into a fault -‐ one of the things you do when hydraulic fracturing is never drill into a fault…... You stay away from a fault because it is likely to set off an earthquake”. Hydraulic fracture stimulation should not be near any faults – there is risk to contaminant pathways and activating earthquakes. This should be taken seriously by the Petroleum Industry, as Professor Fisher is considered the Petroleum Industry’s ‘one of their own’.
‘KNOWN’ FAULTS IN THE LOWER SOUTH EAST Reflective seismicity does not show up all faults
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http://www.adelaidenow.com.au/news/south-‐australia/sa-‐energy-‐plan-‐government-‐and-‐opposition-‐debate-‐costings-‐of-‐temporary-‐power-‐generators/news-‐story/232aba02772946599cc3cf81d07f5414 Government has allocated $500,000 on an advertising campaign to sell their plans to the state. What a waste of tax payer’s money. I wanted to keep this brief. If anyone has questions, please contact [email protected] LATEST MAP I HAVE FOUND 11th April 2017 http://petroleum.statedevelopment.sa.gov.au/__data/assets/pdf_file/0018/258003/otway_figure_14.pdf Please note the area of the Kingston Lignite area has increased a huge amount under the PEL 127.
