Picture: TODD LEWIS
RAWSON Oil and Gas will hold an information session for the South East community today about its plan to drill a new gas well near Nangwarry next year.
Supported by the South Australian Government through the Plan for Accelerating Exploration (PACE) gas grant scheme, Nangwarry-1 will be drilled within PEL 155 in the Otway basin, which is located approximately 5km east of the town.
The drilling project has received $4.95m of funding from the State Government.
With drilling expected to start in January next year, non executive director Michael McGowan said now was the perfect time to inform the community about the project.
“Our activities on the ground will probably start in November when we will start constructing the site and make preparations to drill the well,” Mr McGowan said.
“The purpose of today’s session is to show the community what we are planning to do and we have prepared a lot of material to explain the process and show what we are chasing.”
Nangwarry-1 will be part of a conventional gas exploration program in the South East, with the aim of bringing new gas to the local South Australian market within 18 months to two years.
Rawson is in the process of being taken over by Lakes Oil NL and the project will be undertaken with joint venture partner Vintage Energy.
“Under the grant scheme, our objective that we have to meet is that we have to have gas commercially available by October 2020,” he said.
“Realistically we hope the people of this area will have the potential to benefit from this gas at that time.”
If successful, the project will increase competition in the gas market and support the South Australian Energy Plan objectives by helping to lower energy costs for both industrial and domestic users.
“We are being encouraged by the government to explore because they want to secure the energy needs of the state of South Australia and gas is a component of that,” Mr McGowan said.
“What we aim to do is to deliver gas economically into the market at a rate that gives us a sensible return on our investment and also realises a benefit and saving for the local customers.”
Citing the recently passed legislation of a 10-year moratorium on fracking, Mr McGowan said the well would not be fracture stimulated.
“This is very much conventional oil and gas exploration into what will be highly productive reservoirs if the gas is there, which means there is absolutely no requirement for fracture stimulation,” he said.
“What we are really seeking to replicate is the success Beach Energy has had by getting good gas flows and getting that into the market.”
Protestors showed their defiance against exploration for gas at Beach Energy’s Haselgrove-3 well by turning up at the site on a number of occasions.
Mr McGowan said his team was well-prepared to address their concerns today.
“They may well turn-up and wish to express their views and that is fine, we will listen to them,” he said.
“We will be there to answer genuine concerns people have with the facts and information and we will deal with any other comments, questions, suggestions or feedback people may have for us.”
Members of the Rawson Oil and Gas team will be at the Nangwarry Community Hall from 11.30pm until 6pm today to provide information and address questions.
