Machinery moves to gas drilling site

WORKS BEGIN: Heavy earthmoving machinery begin the groundwork for the Beach Energy’s $12m new drilling program.

EARTHMOVING works at Beach Energy’s proposed Haselgrove 3 conventional gas exploratory well site south of Penola are now under way.

Heavy machinery moved onto the state-owned forestry land site yesterday to prepare for the construction of the $12m gas drilling project.

Road closure signs have been placed at the entrance of the forestry road, which is just eight kilometres from Penola and adjacent to the new Union Dairy Company’s processing factory.

Earthmoving machinery was yesterday removing young radiata pine trees from the area and security fencing was being erected.

The company has moved quickly onto the site following its location being announced last week.

Beach Energy has received a $6m windfall from the State Government to help fund the project.

Regional manager Glenn Toogood this week has moved to reassure the community over the safety of the operation.

“Beach Energy has a strong track record of protecting groundwater resources in its operations in South Australia over the past 50 years,” said Mr Toogood, who was on site overseeing the works.

“This protection has been top of mind as we look to develop gas resources in the South East of South Australia.”

The new conventional gas exploration well Haselgrove 3 was in close proximity to the existing Haselgrove gas wells drilled in the 1990s.

“The well will be drilled to a planned depth of 3900 metres, and will comprise layers of protective steel and cement casing installed across the major groundwater aquifers, including the Gambier Limestone and Dilwyn Formation,” Mr Toogood said.

“While these aquifers extend some 300m below the surface, the protective casing will be installed to approximately 900m, to provide added levels of protection. The well will not be fracture stimulated.”

Mr Toogood said if the well did not strike commercial levels of gas it would be plugged in accordance with strict regulatory guidelines to isolate the deeper layers preventing any possible contamination of the groundwater.

The overlying surface disturbance area would then be rehabilitated to its original state.

“Natural gas is an essential source of energy in the South East, and Beach is playing its part to ensure there is a competitive future supply of gas to assist industries and households facing rising energy costs,” Mr Toogood said.

He said Beach remained committed to using best practice in its operations to ensure well integrity and excellent environmental performance.