GAS exploration company Beach Energy has revealed drilling is likely to begin within weeks at its Haselgrove-3 well site south of Penola.
The $12m drilling program will target commercial volumes of gas in the Penola Trough using conventional techniques.
Haselgrove-3 is being drilled close to Beach’s Katnook gas processing facility and pipeline network as well as the SEA Gas transmission system.
The project received a $6m grant from the State Government to fuel new gas exploration in the South East.
Beach Energy regional manager Glenn Toogood said activity was ramping up at the site ahead of the start of the drilling process.
“At the moment we are checking all the equipment as part of the pre-commissioning of the rig,” Mr Toogood said yesterday.
He said this process was important to ensure the equipment was safe to operate.
Revealing there were already 22 workers on the site, he foreshadowed the number would build this week as the site moved towards 24-hour operation.
The company spokesperson said the exact date for the start of drilling had yet to be identified and drilling activity would take up to eight weeks.
If commercial quantities of gas were found, he said the rig would be dismantled and the well would begin supplying the Katnook gas plant.
In the event the drilling program was not successful, Mr Toogood foreshadowed the site would be decommissioned and rehabilitated and would return to forestry land.
Asked if the company was optimistic commercial quantities of gas would be recovered, he said this was unknown and described it as a”crystal-ball” scenario.
Mr Toogood revealed a drill camp had already been set up the site ready for the beginning of the 24-hour operation.
“We want our workers close to the site,” he said.
Responding to criticism Beach was not using accommodation businesses in Penola, Mr Toogood said the company did not want consume all the available rooms in the historic township.
He said the company felt this could have a negative impact on the tourism industry with visitors unable to find rooms in the township.
While an Adelaide contractor had been engaged to cater for the staff on the site, he said the company encouraged its contractors to access regional produce and products.
Limestone Coast Protection Alliance chair Merilyn Paxton said members were continuing to keep a watchful eye on the site.
She said more trucks carrying equipment and piping had moved onto the site over the past week.
Ms Paxton criticised Beach for housing all their staff on the site and bypassing regional accommodation businesses.
The environmental activist said she had also seen Adelaide-based trucks freighting food onto the site.
The group – which has rallied at the site – has vowed to continue to voice its disapproval to the Beach Energy project.